Which of the Following Is the Best Way to Build

question 72

Multiple Choice

Which of the following is the best way to build a sustainable competitive advantage using product excellence?

• A) being the first to offer customers desired features, even if competitors can copy them easily
• B) positioning the product using a clear, distinctive brand image
• C) having the most features on each model
• D) focusing on being cutting edge and continually eliminating older features that are still in use by customers
• E) copying the market leader's features, but at a lower cost

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Definitions:

Diseconomies of Scale

The situation where a company or business grows so large that the costs per unit increase, leading to inefficiency.

Constant Returns to Scale

A condition in production where increasing the inputs results in a proportional increase in output.

Diseconomies of Scale

A condition in which a firm experiences increased costs per unit when it scales up its production due to inefficiencies.

Output Q₁

A specific quantity of goods or services produced by a firm or economy at a given time, indicated as "Q₁" to denote a particular level of output.