In Order to Be Successful, a Company Must Create Value

question 38

Multiple Choice

In order to be successful, a company must create value that

• A) exceeds the costs incurred to produce, distribute and service products for customers.
• B) is unique and inexpensive.
• C) is hard to imitate and more expensive than what is offered by other firms.
• D) surpasses benchmarking targets.

Comprehend Festinger's cognitive dissonance theory and methods for reducing dissonance.

Identify the impact of competitive and cooperative activities on perceptions of out-groups, guided by Sherif's Robbers Cave study.

Differentiate between normative and informational social influences.

Explore the concepts of romantic and affectionate love and their evolution within relationships.

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Definitions:

Technological Advance

The development and application of innovative tools, machines, materials, and processes that improve efficiency and productivity.

Allocative Efficiency

A state of resource allocation in which it is impossible to make anyone better off without making someone else worse off, often achieved when the value placed on goods and services by consumers is aligned with the costs of producing them.

Productive Efficiency

A state where an economy or entity can no longer produce more of one good without reducing the production of another good, implying that production occurs at the lowest possible cost.

Creative Destruction

A process in capitalism described by economist Joseph Schumpeter, where outdated products, technologies, or companies are replaced by new innovations.