Once Established, Competitive Advantage Is

question 11

Multiple Choice

Once established, competitive advantage is

• A)relatively stable over time.
• B)subject to erosion by competitors or entrants.
• C)a firm's reward for leading the industry.
• D)easily maintained unless entry barriers are high.

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Definitions:

Contribution Margin Ratio

A financial metric that indicates what percentage of sales revenue remains after variable costs are subtracted to cover fixed expenses.

Sales Mix

Refers to the proportion of different products or services that a company sells, aimed at maximizing profitability.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business.

Sales Mix

The composition of a company's various product or service offerings and their relative contributions to overall sales and profitability.