In a Competitive Market,a Firm Has a Difficult Time Capturing

question 10

Multiple Choice

In a competitive market,a firm has a difficult time capturing value due to the large number of rivals.However,it can be successful in capturing value if the

• A)firm's cost curves are higher than those of rivals.
• B)firm's superior productivity is based on value of the whole organization.
• C)firm's superior productivity is based on selected components of superiority within the firm.
• D)demand for the firm's product is inelastic.

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Definitions:

Return on Equity

A measure of the profitability of a business in relation to the equity, indicating how effectively equity is used to generate profits.

Total Stockholders' Equity

The total amount of funds contributed by investors and the accumulated earnings of a company, less any dividends paid.

Net Operating Income

A financial metric that calculates a company's profitability by subtracting operating expenses from operating revenues.

Book Value Per Share

A financial measure that calculates a company's net asset value divided by the number of outstanding shares.