Which of the Following Firms Would Be Least Vulnerable to Competitors

question 102

Multiple Choice

Which of the following firms would be least vulnerable to competitors?

• A) A firm that offers generous return policies to its customers
• B) A firm that offers attractive bargain deals to its customers
• C) A firm that offers numerous loyalty programs to its customers
• D) A firm that offers a unique purchasing experience to its customers
• E) A firm that offers convenient purchasing experience to its customers

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Definitions:

Efficient Level

The optimal point of operation where resources are used in such a way that maximizes productivity and minimizes waste.

Negative Externality

A cost that is suffered by a third party due to an economic transaction, where the cost is not reflected in the transaction's final price.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good, including both direct costs to the producer and external costs to others.

Efficient Output

The level of production at which a company or economy can produce the maximum amount of goods at the lowest cost.