A Company with the Ability to Provide a Unique Product

question 38

Multiple Choice

A company with the ability to provide a unique product or service that offers something of value to buyers besides simply a lower price has which of the following advantages?

• A) relationship building advantage
• B) niche advantage
• C) differential competitive advantage
• D) comparative advantage

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Definitions:

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received from selling it at the market price.

Cupcakes

Small, individually-sized cakes that are typically frosted and decorated, often used to celebrate events or milestones.

Total Surplus

Total surplus is the sum of consumer surplus and producer surplus in a market, representing the total benefits to both buyers and sellers from trade.

Producer Surplus

The difference between the amount that producers are willing to sell a good for and the actual amount received by them.