A firm decides to provide support services for its products for which its customers will pay extra. These services are not offered by its competitors and the firm does no incur commensurate supplier opportunity costs when it offers the services. This firm has achieved which of the following?

A) competitive advantage

B) added value

C) competitive advantage and added value

D) opportunity

B) Added value

Explanation:

Added value - It is an improvement to the product or service making it more worthwhile.

Competitive advantage makes the product or service more desirable than other competitors.

In this scenario, there is no competition of the services as yet, but definitely has an added value by improving the services.

This firm has achieved competitive advantage and added value

Explanation:

Through adding value to their products and services or can their own prices more than their competition in the industry, a business has a competitive advantage.

The competitive advantage is generated through the use of capital and ability to achieve indeed a lower cost level or a distinct commodity.

The preference of low cost or separation positions a company in its sector. This judgement is a key element of the competitive strategy of the organization.