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Question
If the potential responses of competing firms are likely to be very detrimental to the costs advantages of cost leaders, firms pursuing a cost-leadership competitive strategy should
A) drop their prices below competitors' prices to increase overall economic performance through increased volumes of profitable sales.
B) raise their prices above competitors, increasing overall economic performance through higher margins.
C) focus on a specific niche market to avoid direct competition with aggressive competitors.
D) set their prices equal to competitors' prices, sacrificing some market share for increased profit margins and the release of less information.
Answer
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Related questions
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C) task environment
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A competitive advantage that lasts a very short period of time is known as a ________ competitive advantage.
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The difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic costs of these products or services is known as
A) accounting value.
B) comparative value.
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A) high.
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