Michael Porter (1980) Suggested Three Basic Competitive Strategies That Firms

question 39

Multiple Choice

Michael Porter (1980) suggested three basic competitive strategies that firms can pursue. These are overall:

• A) price leadership, product differentiation and market focus.
• B) product leadership, product standardisation and market focus.
• C) comparative advantage, product specialisation and market focus.
• D) price leadership, product standardisation and market focus.
• E) cost leadership, product differentiation and market focus.

Explain the significance of property rights in promoting economic transactions and innovation.

Identify the economic roles of profits and losses in resource reallocation and market responses.

Understand the benefits and limitations of barter and the importance of money in facilitating trade and specialization.

Comprehend the impact of market failures on the economy and the potential role of government intervention.

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Definitions:

RRSP

A Registered Retirement Savings Plan that allows Canadians to save for retirement on a tax-deferred basis.

RRSP

Registered Retirement Savings Plan, a retirement savings and investing vehicle for employees and the self-employed in Canada that offers tax benefits.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding at the end of each period; commonly found in retirement accounts and loan repayments.

Ordinary Annuity

A financial product resulting in payments of a fixed amount received or paid at the end of period intervals.