While Aros Inc.incurs a cost of $20 for a pair of shoes,Shoes Cult Inc.,its competitor,manufactures a pair of shoes at $22.Both the companies are able to sell their shoes for a maximum of $30 per pair.Which of the following statements is true in this scenario?
A) Both Aros and Shoes Cult have achieved differentiation parity.
B) Aros is a cost-leader when compared to Shoes Cult.
C) Aros has created a greater economic value than Shoes Cult.
D) Shoes Cult has a competitive advantage over Aros.
Correct Answer:
Verified
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