A cost-advantage strategy aims to establish the firm as the highest-cost producer in the industry. A) True B) False

Understand the Problem

The question is testing knowledge on cost-advantage strategies within a business context, specifically asking whether it is true or false that such a strategy aims to establish a firm as the highest-cost producer in the industry.

More Information

A cost-advantage strategy, often known as a cost-leadership strategy, aims to reduce a company's costs below those of its competitors, not to become the highest-cost producer.

Tips

One may confuse cost advantage with higher costs, but the goal is actually to lower costs.

Sources

• A firm that chooses a cost-leadership business strategy focuses on ... - homework.study.com
• Competitive strategies - cost strategy vs. differentiation strategy - consilue.com