A manufacturing business pursuing cost leadership is likely to
A) focus on a narrow market segment.
B) use advertising to build brand image.
C) put heavy emphasis on product engineering.
D) rely on experience effects to raise efficiency.

Question

Quizplus · Accepted Answer

One factor often central to an overall cost leadership strategy is the experience curve, which refers to how business learns to lower costs as it gains experience with production processes. With experience, unit costs of production decline as output increases in most industries.

A Manufacturing Business Pursuing Cost Leadership Is Likely to