Specialized Bicycle Components Introduced the First Major-Production Mountain Bike in 1980

question 102

Multiple Choice

Specialized Bicycle Components introduced the first major-production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes. Which of the following terms best defines this ability?

• A)customer sustainability  
• B)organizational advantage  
• C)relative competence  
• D)distinctive competence

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Definitions:

Consumer Surplus

The variance between the aggregate amount consumers can and will pay for a good or service versus the amount they actually spend on it.

Producer Surplus

is the difference between what producers are willing to accept for a good or service versus what they actually receive.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market.

Producer Surplus

The difference between what producers are willing to accept for a product versus what they actually receive, measured by the area above the supply curve and below the market price.