A Change in the External Environment Creates Competitive Advantage Either

question 37

True/False

A change in the external environment creates competitive advantage either because some firms by responding more effectively than others to the firm or because the change has differential effects upon competing firms.

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Definitions:

Supply Function

A mathematical representation of the relationship between the quantity of a good or service that producers are willing to sell and the price of that good or service.

Equilibrium Price

The price point in the market where the amount of goods being offered matches the amount of goods consumers want to buy.

Inverse Demand Function

A mathematical function showing the relationship between the price of a good and the quantity demanded, illustrating how price can be determined as a function of quantity.

Inverse Supply

A concept in economics that describes the relationship between the price of a good and the quantity supplied by producers, typically showing that as price decreases, the quantity supplied decreases.