Question

A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by Multiple Choice cutting its price to levels significantly below the prices of rivals. 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. going all out to use its cost advantage to capture a dominant share of the market. spending heavily on advertising to promote the fact that it charges the lowest prices in the industry. outproducing rivals and thus having more units available to sell.

Answer 1

Answer: 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.

Step-by-step explanation:

A low cost leader is a type of leader that is concerned with giving out low prices for its customers.

It should be noted that a low-cost leader can translate its low-cost advantage over rivals into superior profit performance by using the low-cost edge in order ro underprice its competitors. Also, the low cost strategy will lead to more profit.