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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.

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Answer:

Maybe a thank you letter?

I’m not sure if its correct

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3 years ago

Suppose a technological improvement has lowered the cost of manufacturing cell phone batteries. This would lead to ___________ (

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Answer:

The correct answer is: an increase; fall; substitutes; decrease; complements; increase.

Explanation:

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3 years ago

Margot has fallen in love with a three-bedroom, 2,500-square-foot property in her friend’s neighborhood. It’s listed for $400,00

fenix001 [56]

Answer:

subsititution

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3 years ago

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Answer:

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Explanation:

Calculation to determine what company's overall operating income would Decrease by

Using this formula

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Let plug in the formula

Overall operating income=(5,000 units*$5)-$18,000

Overall operating income=$25,000-$18,000

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Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000

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2 years ago

Madeline quits her job, at which she was earning $20,000 per year. She then takes $50,000 out of savings, on which she was earni

Alenkinab [10]

Answer:

A. Madeline's accounting cost is $75,000

B. Madeline's economic cost is $100,000

C. Madeline's accounting profit is $75,000

D. Madeline's economic profit is is $50,000

Explanation:

A. To calculate Madeline's accounting cost we would have to make the following calculation:

Madeline's accounting cost=cost of supplies+rent+labour costs

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Madeline's economic cost=explicit cost+implicit cost

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Madeline's accounting profit=revenue-accounting cost

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=$75,000

D. To calculate Madeline's economic profit we would have to make the following calculation:

Madeline's economic profit=revenue-economic profits

=$150,000-$100,000

=$50,000

6 0

3 years ago