Which of the Following Is Not a Reason for the Possible

question 35

Multiple Choice

Which of the following is not a reason for the possible erosion of company competitive advantage?

• A) rapid change in technology
• B) globalization
• C) actions by rivals from within and outside of the industry
• D) company commitment to innovation

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some differentiation and price control.

Long-Run Economic Profits

The sustained extra income a firm generates when all inputs are variable, indicating the firm's long-term competitive advantage.

Monopolistic Competition

Monopolistic competition is a market structure where many companies sell products that are similar but not identical, allowing for product differentiation and some degree of market power.

Marginal Benefit

The incremental advantage received by using one more unit of a good or service.