Competitive Advantage Can Be Defined As

question 43

Multiple Choice

Competitive advantage can be defined as:

• A)A firm's ability to establish market leadership
• B)A firm's ability to grow faster than its competitors
• C)A firm's potential to earn a rate of profit that is persistently higher than its rivals
• D)A firm's potential for launching innovative new products.

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Definitions:

Fixed Costs

These are expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance.

Unit Sales Price

The price at which a single unit of product is sold.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis that shows the relationship between total costs, sales volume, and profit.

Profit and Loss

The profit and loss statement is a financial report that summarizes revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.