Question $2(4$ points$)$

$$

In most industries, experience results in unit costs of production declining as

$$ increases.

volume

costs

output

price

Question $3(4$ points$)$

$$

Research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform

lower than firms that achieve differentiation advantages but higher that firms that achieve cost advantages.

at about the same level as firms that achieve either cost or differentiation advantages.

about the same as firms that are stuck in$-$the$-$middle.

higher than firms that achieve either a cost or a differentiation advantage.