For a Competitive Advantage to Exist

question 73

Multiple Choice

For a competitive advantage to exist:

• A)There must be weak and strong players in the industry in terms of capability endowments
• B)There must be some imperfection in the market
• C)There must be the so-called "pure and perfect competition"
• D)Causal ambiguity has occurred

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Definitions:

Marginal Revenue Product

The extra revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of a resource.

Additional Revenue

The increase in income received from selling one more unit of a product or service.

Additional Unit

The next unit of production, referring to the increase in quantity by one unit.