Why Should a Retailer Be Concerned with Building a Sustainable

question 101

Multiple Choice

Why should a retailer be concerned with building a sustainable competitive advantage?

• A) It could affect merchandise planning
• B) They should not as other retailers would just duplicate the efforts
• C) It could result in long-term profitability
• D) It is the final step in developing the retail strategy
• E) The competition's advantage will stimulate the retailer's market

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Definitions:

Underemployment

describes a situation where workers are employed in capacities below their skill level or work fewer hours than they would prefer.

Opportunity Cost

The cost of what is forgone in order to pursue a certain action or decision.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's or industry's output expands.

Factor Suitability

A principle in economics that factors of production such as land, labor, and capital are more productive when appropriately matched with their specific uses or industries.