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Question
Which of the following statements about cost leadership and the threat of buyers is accurate?
A) If buyers demand increased quality or service, cost leaders can absorb these costs and may still have a cost advantage over the competition.
B) Being a cost leader encourages buyer backward vertical integration.
C) Firms pursuing a cost-leadership strategy are especially vulnerable to powerful buyers who insist on low prices or higher quality and service from their suppliers.
D) Cost leaders are not able to absorb costs associated with buyers' demands for increased quality or service.
Answer
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