Cost advantage is usually the result of:
A)Economies of scale
B)A combination of significant factors, often inter-related.
C)Wage costs and size of the firm
D)Low costs of inputs and level of technology used

Question

Quizplus · Accepted Answer

Cost advantage is typically the result of a combination of significant factors that are often inter-related, such as economies of scale, efficient processes or technology, low input costs, and favorable location. While economies of scale (A), wage costs and size of the firm (C), and low costs of inputs and level of technology used (D) can all play a role in achieving cost advantages, none of these factors alone is sufficient to explain the complex nature of cost advantage.

Cost Advantage Is Usually the Result Of