All categories

2 years ago

The fundamental relationship between economic value creation and competitive advantage is?

1 answer:

soldier1979 [14.2K]2 years ago

3 0

The fundamental relationship of economic value creation to competitive advantage is that an increase in one will leads to another. Due to that, we can say that other competitors’ economic value creation will decrease. These changes will lead to a relative shift in cost structure and a shift in consumers’ behavior to pay more.

Competitive markets deal with homogenous products and with too many producers and due to that no one producer can create a monopoly. As in monopoly, the market deals with non-homogenous products with single or few producers.

Further descriptions are below here about the relationship between value creation and competitive advantages:

Fundamental in strategic management
Provides the foundation upon which to formulate a firm's competitive strategy for cost leadership or differentiation
A firm has a competitive advantage when it creates more economic value than rival firms.

For more content like this visit:

brainly.com/question/25010811

#SPJ4

You might be interested in

If the supplies on hand at the end of January totaled $500 and the Supplies on Hand account before adjustment is $900, what shou

Natali5045456 [20]

Answer:

The adjustment at month-end is :

Supplies Expense $400 (debit)

Supplies $400 (credit)

Explanation:

The Supplies Account is an asset Account that decreases as the supplies are used in the business.

The use of supplies prompts the recognition of an expense and de-recognition of an asset as follows :

Supplies Expense $400 (debit)

Supplies $400 (credit)

4 0

3 years ago

Agnes and Buford went camping to celebrate their 50th wedding anniversary. While eating under the moonlit sky, Agnes and Buford

Alex17521 [72]

Answer:

The letter D. Assumption of the risk.

Explanation:

I believe the Best-of-the-Rest company is reliable for the quality of the products it produces and resells. Trading food is very dangerous because it needs a very close surveillance by the owner and supervision. A part of a mouse ear at the bottom of the can may have been overlooked in the packaging. Alternatively, it may have been posed by someone with bad intentions to undermine the company's credibility. Everything is possible.

5 0

3 years ago

A point outside (to the right of) the production possibilities curve of a nation implies that this nation is using its resources

PtichkaEL [24]

Answer:

is not attainable for this nation

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

Point outside the curve or to the right of the curve means that the production level is not attainable given the level of resources

Points inside the production possibilities curve means that the nations resources are not being fully utilised

Factors that cause the PPF to shift

1. changes in technology.

2. changes in available resources.

3. changes in the labour force.

8 0

3 years ago

On October 1st Joe charged $900 to his credit card, on October 10th he charged another $1,300 to his credit card, and on October

poizon [28]

Answer:

interest expense for October $ 27.25

Explanation:

900

+ 1,300 x 20/30

+ 100 x 15/30

1,816.67 average balance

Now we multiply this average balance by the interest rate of the credit card:

1,816.67 x 0.18/ 12 = 27.25

4 0

3 years ago

Two annuities have equal present values and an applicable discount rate of 7.25 percent. One annuity pays $2,500 on the first da

nignag [31]

Answer:

$2681.30 approx.

Explanation:

The first annuity is case of annuity due

For the first annuity, $2500 + 2500 × cumulative present value factor at 7.25% for 14 years

= $2500 + 8.6158 × 2500

= $24040 approx

The second annuity is the case of deferred annuity wherein payments are made at the end of the year.

Payment amount of second annuity = Present Value of first annuity ÷ cumulative present value annuity factor at 7.25% for 15 years

This will be equal to 24,040/8.9658 = $2681.30 approx.

5 0

3 years ago