Firms Can Achieve Competitive Advantage by Supplying a Product at Lower

question 48

True/False

Firms can achieve competitive advantage by supplying a product at lower cost than competitors or by effectively differentiating their product so that the customer is willing to pay a higher price.

---

Definitions:

Profit

The profit earned when the revenue obtained from a business operation surpasses the expenses, costs, and taxes required to maintain that operation.

Loss

A financial condition that occurs when expenses exceed revenues, implying a negative profit.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Monopolists

Firms or individuals who are the sole providers of a particular good or service, possessing significant control over market price.