When a firm is able to create more economic value than rival firms it is said to have a(n)
A) comparative advantage.
B) competitive advantage.
C) strategic choice.
D) economic advantage.

Question

Quizplus · Accepted Answer

When a firm is able to create more economic value than rival firms, it is said to have a competitive advantage. This means that the firm is able to outperform its competitors in terms of profitability or market share, by offering better products or services at a lower cost, or by having a unique position in the market. Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. Strategic choice refers to the decision-making process in which a firm selects a strategy that is aligned with its goals and objectives. Economic advantage is not a commonly used term in business strategy.

When a Firm Is Able to Create More Economic Value