When a Stock Trading Firm Opens a New Site for Online

question 39

Multiple Choice

When a stock trading firm opens a new site for online stock transactions they might gain competitive advantage by:

• A) establishing alliances.
• B) product enhancement.
• C) creating barriers to entry.
• D) creating new products or services.
• E) reducing costs.

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Definitions:

Economic Principle

Fundamental concepts that underpin the study and practice of economics, such as supply and demand or the cost-benefit analysis.

Productive Capacity

The maximum output a firm or economy can produce with its current level of resources and technology.

Efficient

The optimal use of resources to achieve the best possible outcome or output with minimal waste or effort.

Reallocating Resources

The process of distributing resources, such as capital and labor, in a different manner to increase efficiency or achieve a specific objective.