The Question "What Does a Firm Need to Survive Competition

question 34

Multiple Choice

The question "What does a firm need to survive competition?"

• A)can be addressed through analysis of competitors using all possible means, even at the edge of legality and ethics.
• B)can be addressed by studying very carefully the two largest rivals in the industry.
• C)requires an understanding of the current and future basis of competition specific to the industry.
• D)Can never be answered clearly, because competitors will not divulge what they are doing.

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Definitions:

Gross Investment

The total amount spent on purchases of new capital assets plus replacement of worn-out or obsolete assets.

Gross National Income

The total domestic and foreign output claimed by residents of a country, including wages, salaries, and property income.

Gross Domestic Product

The sum value in currency or market terms of every finished product and service created within a country during a specified period.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP growth.