Which One of the Following Is Not Something That Can

question 125

Multiple Choice

Which one of the following is not something that can be learned from doing a competitive strength assessment?

• A) The factors on which a company is competitively strongest and weakest vis-à-vis key rivals
• B) Whether a company should correct its weaknesses by adopting best practices and revamping the makeup of its value chain
• C) Which of the rated companies is competitively strongest and what size competitive advantage it enjoys
• D) Whether a company has a net competitive advantage or a net competitive disadvantage relative to key rivals (with the size of the advantage/disadvantage being indicated by the differences among the companies' competitive strength scores)
• E) Which rival company is competitively weakest and the areas where it is most vulnerable to competitive attack

---

Definitions:

Potential Output

Potential output is the maximum amount of goods and services an economy can produce when it is most efficient and fully employed, without causing inflation.

Expansionary Gap

A situation where real GDP exceeds potential GDP, often leading to inflationary pressures due to high demand in an economy.

Equilibrium Output

The level of output where the quantity of goods and services produced equals the quantity of goods and services demanded.

Expansionary Gap

A situation in macroeconomics where the actual output in an economy exceeds the potential output, traditionally leading to inflation.