A Low-Cost Leader Can Translate Its Low-Cost Advantage Over Rivals

Multiple Choice

A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by

A) underpricing rivals and attracting quality-sensitive buyers in great enough numbers.
B) maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold.
C) going all out to use its cost advantage to capture a dominant share of the market.
D) spending heavily on advertising to promote its cost advantage to build strong customer loyalty.
E) outproducing rivals and thus having more available units for sale.