Firms that focus on cost leadership tend to find the lowest-cost location might

A) locate far from their customers.
B) locate in a higher cost area to provide faster response.
C) have many facilities to take advantage of economies of scale.
D) increase inventory levels to reduce stockouts.

Cost Leadership

A business strategy aimed at achieving the lowest operational costs within an industry to offer lower prices than competitors and thus gain market share.

Lowest-Cost Location

Refers to the geographic location selected for business operations, manufacturing, or logistics based on the criteria of minimal operational and production costs.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of the production increases, the cost per unit of the product decreases.