Which Term Refers to Any Factors That Allow a Firm

question 31

Multiple Choice

Which term refers to any factors that allow a firm to differentiate its product or service from those of its competitors to increase market share?

• A) functional strategy
• B) competitive advantage
• C) corporate strategy
• D) related diversification

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Definitions:

Monopolistic Competition

Market structure in which large numbers of buyers and sellers exchange heterogeneous products so each participant has some control over price.

Homogeneous Product

A product that is virtually indistinguishable from the same products offered by different suppliers in the market.

Control Over Price

The ability of a company or seller to dictate the price of a product or service in the market.

Pure Competition

A market structure characterized by an extremely high level of competition, where there are many sellers offering standardized products.