Which of the Following Statements Would Be Supported by Michael

question 4

Multiple Choice

Which of the following statements would be supported by Michael Porter?

• A) Economic prosperity depends primarily on inherited national advantages.
• B) The presence of strong competitors in a nation hinders national competitive advantage.
• C) The presence of highly demanding customers discourages innovation.
• D) Rivalry among industry competitors spurs innovation.

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Definitions:

Markup

Markup refers to the difference between the cost of a good or service and its selling price, expressed as a percentage of the cost.

Selling Price

The amount of money for which a product or service is sold to customers.

Skimming Pricing Strategy

A pricing strategy where a product is initially sold at a high price, which is gradually lowered to attract more price-sensitive customers.

Home Electronics

Electronic devices intended for everyday use in private homes, such as televisions, refrigerators, and microwaves.