Cost reduction pressures can be particularly intense in industries producing:
A) commodity-type products.
B) highly differential products.
C) highly customized services.
D) goods that have no close substitutes.
E) goods that need minimal advertising.

Question

Quizplus · Accepted Answer

Commodity-type products are usually sold on the basis of price and there is little differentiation between products offered by different companies. This creates intense competitive pressures on companies to reduce costs in order to maintain or increase profit margins.

Cost Reduction Pressures Can Be Particularly Intense in Industries Producing