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

Multiple Choice

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

A) cutting its price to levels significantly below the prices of its rivals.
B) using its low-cost edge to underprice competitors and attract price-sensitive buyers in large enough numbers to increase total profits or refraining from price cutting and using the low-cost advantage 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 the fact that it charges the lowest prices in the industry.
E) outproducing its rivals and thus having more units available to sell.