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Management · Q84

Management Accounting

Graduate and Post Graduate · Management · question 84

Q84

An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as

A.
inelastic demand
B.
product differentiation
C.
cost leadership
Answer
D.
elastic demand

Answer: Option C

Solution

Answer: Option C
Solution:
An organization's ability to offer market offerings at lower prices, in comparison with its competitors is known as cost leadership. Cost Leadership is the mechanism of establishing a competitive advantage by having the lowest cost of operation in the industry.