Which Strategy for Competitive Advantage Involves Introducing New Products and Putting

question 79

Multiple Choice

Which strategy for competitive advantage involves introducing new products and putting new features in existing products?

• A) cost leadership
• B) differentiation
• C) innovation
• D) operational effectiveness
• E) customer-orientation

---

Definitions:

Efficient

The optimal use of resources to achieve the desired output with minimal waste, or achieving a goal in the most cost-effective way.

MSB = MSC

A condition where the Marginal Social Benefit of consuming a good equals the Marginal Social Cost of producing it, representing an optimal allocation of resources.

Public Park

A plot of land, usually owned by a government, open to the public for recreation and relaxation, without an entrance fee.

Positive Externality

A benefit received by third parties not directly involved in an economic transaction, like the environmental benefits from a public park.