When Value Is Created by Incorporating a New Step in a Value

question 108

Multiple Choice

When value is created by incorporating a new step in a value chain, ________ benefits.

• A) everyone downstream from that step in the chain
• B) only the party that initiated the step
• C) everyone in the chain
• D) only the customers

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Definitions:

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing for product differentiation.

Monopolistic Competitor

A market structure where many firms sell products or services that are similar but not identical, allowing for significant differentiation among them.

Local Monopoly

A situation where a single firm has significant control or is the only provider of a product or service in a particular local market, limiting competition.

Drugstore

is a retail shop where medications, as well as other household items and cosmetics, are sold.