Due to its large sales volume and low cost structure, Quick Serve Mini-Marts enjoys a cost leadership position. Which of the following scenarios might threaten Quick Serve's competitive advantage? Select one: A Existing competitors in the mini-mart industry lower their prices to match those of Quick Serve B. A new competitor is perceived to provide similar value, but in addition offers innovative self-checkout, that saves them substantial labor costs C. Industry suppliers raise their prices. D. Competitors engage in an all-out price war.
Due to its large sales volume and low cost structure, Quick Serve Mini-Marts enjoys a cost leadership position. Which of the following scenarios might threaten Quick Serve's competitive advantage? Select one: A Existing competitors in the mini-mart industry lower their prices to match those of Quick Serve B. A new competitor is perceived to provide similar value, but in addition offers innovative self-checkout, that saves them substantial labor costs C. Industry suppliers raise their prices. D. Competitors engage in an all-out price war.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Due to its large sales volume and low cost structure, Quick Serve Mini-Marts enjoys a cost leadership position. Which of the following
scenarios might threaten Quick Serve's competitive advantage?
Select one:
A Existing competitors in the mini-mart industry lower their prices to match those of Quick Serve
B. A new competitor is perceived to provide similar value, but in addition offers innovative self-checkout, that saves them substantial
labor costs
C. Industry suppliers raise their prices.
D. Competitors engage in an all-out price war.
A drawback of short-term contracting as an alternative to making a component in-house is that
Select one:
A it is the most-integrated alternative to performing an activity so the principal company has no control over the agent.
B. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
C. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality.
D. it fails to allow a long planning period that individual market transactions provide.
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