A firm can develop competitive advantage by

a. raising willingness to pay a great deal with only slight increases in costs.

b. developing large cost savings with only slight decreases in customer willingness to pay.

c. producing superior products at lower costs.

d. None of the answers is correct

e. All of the answers are correct

Question

Business

Jensen Pham

22 February, 18:30

A firm can develop competitive advantage by

a. raising willingness to pay a great deal with only slight increases in costs.

b. developing large cost savings with only slight decreases in customer willingness to pay.

c. producing superior products at lower costs.

d. None of the answers is correct

e. All of the answers are correct

+1

Answers (1)

Know the Answer?

Mitchell Trevino · Answer 1

The correct answer is E

Explanation:

Competitive advantage is the advantage which the firm or business attains when they create more value than the other firms by the strategic position of the lower costs or the greater benefits.

It focus on increasing or rising the wedge among what the customers are willing to pay and the cost or expense that the firm incurs.

So, the firm could develop the advantage through producing superior products at the lower cost, raise the willingness to pay the great deal with slight for increasing the costs and also develop the large cost savings.