Companies invest in specialized assets because these assets allow them to
A) lower their cost structure.
B) charge excessive prices for their products.
C) better differentiate their products.
D) A and B.
E) A and C.

Question

Quizplus · Accepted Answer

Specialized assets, such as unique machinery, provide companies with a competitive advantage by allowing them to produce products more efficiently, reducing their cost structure. Additionally, specialized assets can help companies differentiate their products from competitors, as they may be able to produce products that others cannot. This can lead to higher prices for their products, but the main advantage is the ability to better differentiate themselves and potentially gain market share. Therefore, the correct answer is E, as A and C are the most accurate reasons for why companies invest in specialized assets.

Companies Invest in Specialized Assets Because These Assets Allow Them