Anything That a Firm Does Especially Well Compared to Rival

question 58

Multiple Choice

Anything that a firm does especially well compared to rival firms is referred to as

• A) competitive advantage.
• B) comparative advantage.
• C) opportunity cost.
• D) sustainable advantage.
• E) an external opportunity.

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Definitions:

Price Elasticity Of Demand

The ratio of the percent change in the quantity demanded to the percent change in the price as we move along the demand curve.

Price Discrimination

The approach of marketing identical products to various customers at various prices, determined by their readiness to pay.

Network Externalities

The effect that an additional user of a good or service has on the value of that product to others.

Value Of The Good

The importance, worth, or usefulness of a good to consumers, often reflected in the price they are willing to pay.