According to Michael Porter in His Book,Competitive Advantage,a Key Concept

question 79

Multiple Choice

According to Michael Porter in his book,Competitive Advantage,a key concept used in analyzing the competitive position of a firm is creating value for

• A) buyers that exceeds the costs of production (i.e., margin).
• B) suppliers that exceeds the costs of production (i.e., margin).
• C) government that exceeds the costs of production (i.e., margin).
• D) employees that exceeds the costs of production (i.e., margin).

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Definitions:

Profit-Maximizing Output

The quantity of goods or services that a firm should produce and sell to achieve the highest possible profit.

Demand Data

Information related to the quantity of a good or service consumers are willing and able to purchase at various prices.

Specific Firm

Refers to a particular company or business entity that operates in a competitive market.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at different price points.