Value Creation Is What the Firm Adds to a Product

question 50

True/False

Value creation is what the firm adds to a product or service by virtue of making it; it's the amount of benefits provided by the product or service once the costs of making it are subtracted.

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Definitions:

Ego Identity

A sense of one's identity and personal worth developed during adolescence, as conceptualized by Erik Erikson.

Ego

The part of the psyche that mediates between the desires of the id, demands of the reality, and the moral standards of the superego in psychoanalytic theory.

Id

In Freudian psychoanalysis, the part of the mind that contains innate biological drives and instincts; operates based on the pleasure principle.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue.