Which of the Following Is Not a Route That Can

question 20

Multiple Choice

Which of the following is not a route that can help a company achieve a differentiation advantage?

• A) Superior innovation
• B) Low cost structure
• C) Responsiveness to customer needs
• D) Excellent quality
• E) Superior innovation and excellent quality

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Definitions:

MRS

Marginal Rate of Substitution, the rate at which a consumer is ready to exchange quantities of one good for another good while maintaining the same level of utility.

MRT

MRT, or Marginal Rate of Technical Substitution, measures the rate at which one input can be reduced per additional unit of another input, keeping output constant.

Excess Demand

Occurs when the quantity demanded of a good or service at a particular price exceeds the quantity supplied, leading to upward pressure on prices.

Excess Supply

The situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.