When a firm has a greater positive difference between cost and value than its rivals,it can achieve competitive advantage by:
A) Raising the price and maintaining market share and volumes.
B) Increasing production costs while lowering prices.
C) Charging the same or even lower prices and selling more goods or services.
D) Minimizing the difference between value and cost and lowering prices.

Question

Quizplus · Accepted Answer

The firm that has the largest difference between value and cost can charge a lower price as competitors and thus gain market share while still bringing in profits.

When a Firm Has a Greater Positive Difference Between Cost