The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle. Which of the following statements is most likely true of StoreAll Inc. in this scenario?
A. It has a competitive disadvantage in the industry.
B. It has formed a strategic alliance with other firms in the industry.
C. It has competitive parity with other firms in the industry.
D. It has a competitive advantage in the industry.
Answer: D
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