Focusing the Ability Can Secure a Competitive Edge but Also

question 80

Multiple Choice

Focusing the ability can secure a competitive edge but also carries some risks that could be detrimental to the focused firm, such as

• A)the likelihood that a focused company will become so cost efficient it will achieve excessive profits.
• B)the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes.
• C)the potential for the niche to become so attractive it will not attract new competitors thereby providing excessive market segment profits.
• D)the potential for technological advances to favor only low-cost providers.
• E)the likelihood that a focused company will become so cost inefficient it will achieve excessive profits.

---

Definitions:

Economic Growth

An increase in the productive capacity of an economy, often measured by the rise in real GDP over a period of time.

Decision-Making Processes

Processes through which individuals or organizations make choices among alternative courses of action to achieve their objectives.

Scarcity

A fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, leading to the necessity of prioritizing resource allocation.

Production Possibility Curve

A graphical representation showing the maximum combination of goods and services that can be produced in a given period with available resources.