Unicorn Toys faces stiff competition from Playtime Inc., a rival firm with which Unicorn
Toys has achieved differentiation parity. Both firms have invested in state-of-the art production
facilities and have similar learning curves of 85 percent. Assuming neither firm can reduce the
cost of its input factors, how can Unicorn Toys achieve a competitive advantage as a cost leader?
A) Reduce the manufacturing staff by half to save on labor costs.
B) Increase spending on product features.
C) Have a cumulative output that is greater than Playtime Inc.'s.
D) Eliminate several features that customers value to cut costs.