If Elise's company is achieving cost advantages over rivals, it can maintain these advantages only if:
A)they are unique and cannot be copied by other companies.
B)they relate to marginal costs rather than average costs.
C)the company is producing an identical product rather than a differentiated product.
D)the company faces a steady demand.

Question

Quizplus · Accepted Answer

Cost advantages are sustainable only if they are unique and cannot be easily copied by competitors. If rivals are able to adopt the same cost-saving measures, the advantage will diminish.

If Elise's Company Is Achieving Cost Advantages Over Rivals, It