Cost-reduction generates
A)Increases in long-run profitability
B)Increases in long-run profitability only if the cost reduction is difficult to imitate
C)Decreases in long run profitability
D)No change in profitability

Question

Cost-reduction generates​
A)​Increases in long-run profitability
B)Increases in long-run profitability only if the cost reduction is difficult to imitate
C)Decreases in long run profitability
D)​No change in profitability

Quizplus · Accepted Answer

Cost-reduction leads to long-run profitability increases only if the cost reduction is difficult for competitors to imitate, providing a sustainable competitive advantage.

Cost-Reduction Generates​

Cost-Reduction Generates