A Unique Strength Relative to Competitors That Provides Superior Returns

question 144

Multiple Choice

A unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation, is referred to as a

• A) creative advantage.
• B) marketing edge.
• C) distinctive competency.
• D) competitive advantage.
• E) core benefit.

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Definitions:

Average Variable Cost Curve

The Average Variable Cost Curve graphically represents how a firm's variable costs (costs that change with the level of output) per unit of output change as the firm alters its level of production.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as production volume changes.

Diminishing Returns

A principle stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.