A firm typically achieves an absolute cost advantage by offering a ________ product or service to a ________ target market using standardization to derive the greatest benefits from economies of scale and experience.
A) no frills; narrow
B) complex; narrow
C) no frills; broad
D) complex; diverse

Question

Quizplus · Accepted Answer

A business that strives for a low-cost advantage must attain an absolute cost advantage relative to its rivals. This is typically accomplished by offering a no-frills product or service to a broad target market using standardization to derive the greatest benefits from economies of scale and experience.

A Firm Typically Achieves an Absolute Cost Advantage by Offering