Which of the Following Would Be Considered a Fatal Mistake

question 20

Multiple Choice

Which of the following would be considered a fatal mistake in strategic planning, according to researcher Michael E. Porter?

• A)no real competitive advantage
• B)no real innovation
• C)no real financial forecasts for business
• D)no real objectives

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing companies to adjust to changes in the market.

Monopolistically Competitive

A market structure where many competing producers sell products that are differentiated from one another (e.g., by branding or quality) and hence are not perfect substitutes.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, measuring the firm’s performance beyond its accounting profit.

Long Run

A period in economics where all factors of production and costs are variable, allowing for full adjustment to any change.