In General, Competitive Advantage Comes from Which of the Following

question 48

Multiple Choice

In general, competitive advantage comes from which of the following?

• A) lifetime value of a customer
• B) cost advantage or a differential advantage
• C) consumer-generated content
• D) crowdsourcing
• E) social networking and the wisdom of crowds

---

Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the surplus generated beyond the normal profit expected in a competitive market.

Total Costs

The complete sum of expenses incurred in the production of goods or services, including both fixed and variable costs.

Perfectly Competitive

A market structure where there are many buyers and sellers, products are identical, and there is free entry and exit in the market.

Production Technology

The quantitative relationship between inputs and outputs.