According to Michael Porter,conditions That Create Advantages for Firms in Certain

question 24

Multiple Choice

According to Michael Porter,conditions that create advantages for firms in certain countries and industries include:

• A) Suppliers to a particular industry are the very best in the world
• B) Strong industry competition
• C) Buyers are among the most demanding in the world
• D) All of the above

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Definitions:

Implicit Costs

Costs that represent the loss of potential income from resources when they are not utilized in their best alternative use.

Opportunity Cost

Forgoing possible gains from various alternatives by picking a specific one.

Personal Savings

The portion of an individual's income that is not spent on consumption and is saved for future expenses, investments, or emergencies.

Explicit Cost

Direct, out-of-pocket payments for the purchase of inputs or resources for business operations.