Which of the Following Is an Example of a Negative

question 123

Multiple Choice

Which of the following is an example of a negative externality?

• A) an increase in the value of land you own when a nearby development is completed
• B) the costs paid by a company to build an automated factory
• C) falling property values in a neighborhood where a disreputable nightclub is operating
• D) the higher price you pay when you buy a heavily advertised product

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Definitions:

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors.

Core Competence

A primary area of expertise or strength of an organization that gives it a competitive advantage.

Short-Term Advantage

A temporary benefit that gives a business a competitive edge over its rivals in the immediate term.

Resource-Based View

A perspective in strategic management that emphasizes the importance of a firm's resources and capabilities to gain and sustain competitive advantage.