Costs and Price Differences Among Competing Companies Can Have Origins

question 38

Multiple Choice

Costs and price differences among competing companies can have origins in activities performed by

• A)whether the company has a longer or shorter value chain than its close rivals.
• B)value chains of the company's suppliers.
• C)developing a "worry list" of problems and issues for managerial strategy making.
• D)the company's internally performed activities (its own value chain),but also on costs in the value chain of its suppliers and distribution channel allies.
• E)value chains of a company's distributors and retail dealers and forward channel allies.

---

Definitions:

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the productive resources involved in its production, emphasizing the contribution of each unit of labor or capital.

Income Distribution

Refers to the way in which total income is shared among the members of a society.

Government Subsidy

A financial contribution provided by the government to individuals, businesses, or other organizations, aimed to support or stimulate economic activity.

Superstars Pay

Refers to the significantly high salaries or earnings of top performers or individuals in specific industries such as sports, entertainment, and business due to their exceptional skill, talent, or marketability.