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Q63 Single choice

Economic theory identifies two basic types of goods: inferior goods and superior goods. As consumer income rises, a lower percentage of earnings are expended on inferior goods while a higher percentage of earnings are spent on superior goods. Overall strategies for achieving organizational missions would most likely match with types of goods as follows:

A
Cost leadership strategies for superior goods, differentiation strategies for inferior goods.
B
Cost leadership strategies for inferior goods, differentiation strategies for superior goods.
C
Cost leadership strategies would most likely be used for both inferior and superior goods.
D
Differentiation strategies would most likely be used for both inferior and superior goods.

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