Assets purchased at preinflation prices is an example of:
A) Product differentiation
B) Cost disadvantages independent of size
C) Capital requirements
D) Distribution

Question

Quizplus · Accepted Answer

Assets purchased at preinflation prices represent a cost advantage that a firm may have over its competitors, which is not related to the size of the firm but rather to the timing of the asset purchase. This is an example of cost disadvantages independent of size, as firms entering the market later may have to purchase assets at higher, post-inflation prices.

Assets Purchased at Preinflation Prices Is an Example Of