While Fun Frames incurs a cost of $12 for a pair of eyeglasses, Highwire, its competitor, manufactures a pair of glasses at $10. Both the companies are able to sell their glasses for a maximum of $30 per pair. Which of the following statements is true in this scenario?
A. Fun Frames is a cost-leader when compared to Highwire.
B. Highwire has a higher opportunity cost than Fun Frames.
C. Fun Frames has created a greater economic value than Highwire.
D. Fun Frames and Highwire have achieved differentiation parity.
Answer: D
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