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Benchmarking Involves Comparing the Firm's Products and Processes to Those

question 116

True/False

Benchmarking involves comparing the firm's products and processes to those of the competitors to identify best practices to improve quality and performance.


Definitions:

Comparative Advantage

A principle that states that a party should specialize in producing goods for which it has the lowest opportunity cost, leading to increased economic efficiency.

Opportunity Cost

The sacrifice of potential gains from other possibilities when a specific alternative is opted for.

Absolute Advantage

A condition in which a country, individual, or firm can produce a good or service at a lower cost per unit than competitors.

Specialization

Focusing on a narrow area of expertise or production, often leading to increased efficiency and productivity in that area.

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