Question

Which of the following strategies is most likely to be followed by firms that position themselves as caterers of the best products at economical prices?

A) more for the same
B) more for less
C) same for less
D) more for more
E) less for much less

Answer 1

Firms providing the best products at economical prices most likely follow the 'more for less' strategy, allowing them to offer higher value at lower costs while managing their long-run average costs effectively to stay competitive.

Step-by-step explanation:

The strategy most likely to be followed by firms that position themselves as caterers of the best products at economical prices is B) more for less. This strategic position implies that the firms offer customers higher value products at lower prices, essentially giving consumers more benefits for less cost. This approach may involve achieving economies of scale, continuous improvement in production processes, and effective cost management to keep the long-run average cost (LRAC) low. Companies take this route aiming to outcompete others on both quality and price, effectively allowing them to capture a larger market share and to potentially drive other competitors out of business.