Which of the Following Is Most Likely a Competitive Advantage

question 37

Multiple Choice

Which of the following is most likely a competitive advantage?

• A) Using only fresh ingredients on pizzas when competitors use canned ingredients.
• B) Having the most popular comedian in town perform at your bar.
• C) Staying open later then your competitors.
• D) Providing a type of service that your customers like and identify with your business.
• E) None of the Above

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Definitions:

Pure Monopolist

A market scenario where a single firm is the sole provider of a product or service, without any close substitutes, giving the firm significant market power to influence prices.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes.

Excess Capacity

Plant resources that are underused when imperfectly competitive firms produce less output than that associated with achieving minimum average total cost.

Monopolistic Competition

An economic model describing a market structure where many companies sell products that are similar but not identical, allowing for significant control over prices and product differentiation.