Answer:
a. 0.23; No, the city does not have a competitive advantage in this industry
Explanation:
Calculation to determine the location quotient for Music City and whether this city has a competitive advantage in the entertainment industry
Location quotient for Music City= (3020/ 656,785)/ (2,160,970/ 106,201,232)
Location quotient for Music City=0.004598/0.020347881
Location quotient for Music City= 0.225
Location quotient for Music City= 0.23 (Approximately)
Based on the above calculation the city does NOT have a competitive advantage in this industry.
Answer:
either using its low-cost edge to underprice competitors and attract price sensitive buyers in large enough numbers to increase total profits or refraining from price-cutting and using the low-cost advantage to earn a bigger profit margin on each unit sold.
Explanation:
Competitive advantage is the edge that a firm has over others in the same industry that results in higher profit margins for them.
One of the importance competitive advantages is price advantage.
This results from the firm being a low cost leader. Their cost of production is low enough for them to attract customers that are price sensitive leading to increased profits.
Also they can underprice their competitors or earn profit margins on the reduced cost of production per unit
The management is first assumed to desire to produce as much output as possible in order to maximize profit. Another supposition is that the company may improve output by employing more input and that higher output equates to more profits.
<h3>
What are the production possibilities, frontier model?</h3>
The graph known as the Production Possibilities Frontier (PPF) illustrates all the possible output combinations of two items that can be created with the resources and technologies currently in use. The PPF effectively expresses the ideas of choice, tradeoffs, and scarcity.
Frontier of Assumptions for Production PPF's first presumption is that the current technology setup or infrastructure will not change. The second presumption is that it only compares two goods or services that make use of the same resources.
Learn more about The Production Possibilities Frontier Model here:
brainly.com/question/13609959
#SPJ1
Answer:
the resource-based model.
Explanation:
Resource-based theory can be understood as one that guarantees a strategic and competitive advantage to an organization through its resources that cannot be imitated and replaced. In the case of Alibaba, its valuable resources that guarantee long-term competitive advantages for the company are the company's ability to offer a wide range of products with significant discounts in relation to competitors, facilities for shipping goods worldwide, etc.
