If a firm keeps its costs near the industry average and it can command a premium price,then it can obtain ________.
A) average profits
B) unfair profits
C) fair-market profits
D) above-average profits

Question

Quizplus · Accepted Answer

By keeping its costs near the industry average and commanding a premium price, the firm differentiates itself from its competitors and can earn above-average profits. This is known as a differentiation strategy, where a firm focuses on offering unique products or services that are valued by customers and are willing to pay a premium price for it.

If a Firm Keeps Its Costs near the Industry Average