Because of Its Highly Efficient and Low-Cost Distribution System, Andro

question 62

Multiple Choice

Because of its highly efficient and low-cost distribution system, Andro Stores Inc., a multinational retail corporation, has an edge over its rivals. Andro's competitors will find it difficult to reproduce such a distribution system in the foreseeable future. It is clear, then, that Andro has a(n) over its competition.

• A) effective competitive advantage
• B) absolute advantage
• C) sustainable competitive advantage
• D) controllable advantage
• E) comparative advantage

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Definitions:

Very Inelastic

Describes a situation where the demand or supply for a product is barely affected by changes in the price.

Calculate Elasticity

entails determining the degree to which the quantity demanded or supplied of a good changes in response to a change in its price.

Unit Elastic

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.

Total Revenue

The total earnings accrued from a company's principal operations through the transaction of goods or services.