Why Do We Need the Concept of Competitive Advantage If

question 19

Essay

Why do we need the concept of competitive advantage if we identify it with superior financial returns?

Identify the effects of complementary and substitute goods on demand.

Recognize how a change in the number of consumers affects market demand.

Understand how changes in consumer income affect demand for goods.

Identify the factors that lead to increases or decreases in market demand.

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Definitions:

State-Ordered

Directed or mandated by a governing authority or government.

Political Systems

The framework by which a society organizes and administers public policy and governance, including democracy, monarchy, and dictatorship.

Uncentralized Political System

A political structure where power is distributed among various groups or units instead of centralized authority.

Social Organization

The structured patterns of relationships and roles that arise in any society, dictating how individuals and groups interact.