Companies with higher costs ________.
A) can drive out competitors through their pricing strategy
B) intentionally pay higher costs so that they can add value through higher quality and claim higher prices and margins
C) can set lower prices that result in increased sales though with lower margins
D) specialize in selling products without value-added features
E) are more financially successful

Question

Quizplus · Accepted Answer

Companies with higher costs may choose to intentionally pay more for higher quality materials or processes in order to add more value to their products, which allows them to claim higher prices and margins. This can set them apart from competitors who focus on low-cost strategies.

Companies with Higher Costs ________