Companies Often Use Features to Differentiate Themselves from Competitors

question 56

Multiple Choice

Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with ________.

• A) what the competition offers
• B) the ability to manufacture the feature in a timely way
• C) what customers will pay
• D) the configurations that make a positive brand look stylish
• E) the resources available for production

Differentiate between absolute and comparative advantages.

Calculate opportunity costs from given data.

Understand the implications of trade on output and consumption in different economies.

Recognize the potential for mutual benefits from trade between individuals or nations.

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Definitions:

Useful Life

The estimated period of time over which a tangible asset is expected to be useful for the purposes of the business.

Depreciable Cost

The original cost of a fixed asset minus its estimated salvage value, representing the amount subject to depreciation over the asset's useful life.

Straight-Line Depreciation

A procedure for allocating the price of a physical asset over its effective life in identical annual installments.

Useful Life

The estimated time period that an asset is expected to be usable for its intended purpose, affecting its depreciation calculation.