When the Costs of Supplies Increase in an Industry,the Low-Cost

Multiple Choice

When the costs of supplies increase in an industry,the low-cost leader may:

A) continue competing with rivals on the basis of product features.
B) lose customers as a result of price increases.
C) make it difficult for new entrants to the industry to achieve above-average returns.
D) be the only firm able to pay the higher prices and continue to earn average or above-average returns.