Gilroy Crackers enjoys a competitive advantage as a cost leader because high demand for its products has allowed it to operate at the minimum efficient scale. Which of the following scenarios would be most concerning to the managers of Gilroy Crackers?

A. A major winter storm shuts down Gilroy's production for several days.
B. Gilroy's most reliable production worker takes a job in another industry.
C. A wheat shortage raises input costs across the industry.
D. Gilroy's leading competitor develops a new low-sodium product.


Answer: A

Business

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