Business, 05.09.2020 01:01 coreen9

The owners of Carpo Inc., a watch company, also own a steel company and a leather goods manufacturing company. This relieves them from expenses that they would have to bear, if they had to rely on outside sources for the raw materials needed to make their watches. This enables the company to produce watches at a much lesser cost than other companies in the industry. This scenario best illustrates a .

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Answer from: DavidYSD46481

The scenario involving owners of Carpo Inc. best illustrates Cost advantage.

Cost advantage is achieved when a company produce/offer a product or service at a lower cost than its competitors.

Here, the owners of Carpo Inc. produces watch and also own a steel company and leather goods manufacturing company.

His companies put him at cost advantage over other watch producer because the raw-material to be use in production of the watches are produced by other companies.

Therefore, the scenario involving owners of Carpo Inc. best illustrates Cost advantage.

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