If a Small Business Cannot Sustain a Competitive Advantage, the Best

question 114

True/False

If a small business cannot sustain a competitive advantage, the best recommendation is to view the business as a short-term investment rather than a long-term enterprise.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, factor of production, or input.

Perfect Competition

An industry with so many firms that no one firm has any influence over price, and firms produce an identical product.

Imperfect Competition

All market structures except perfect competition; includes monopoly, oligopoly, and monopolistic competition.

Marginal Revenue Product

The additional revenue generated from employing one additional unit of a resource, considering all other inputs constant.