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:
$376 billion
Explanation:
The formula and the computation of personal income is shown below:
= Personal Consumption Expenditures + Personal Taxes + Interest
= $314 billion + $46 billion + $16 billion
= $376 billion
The personal incomes show a combination of the personal consumption expenditure, personal taxes, and interest. So accordingly we added the three above components
Answer: Option (A) is correct.
Explanation:
The statement in the question best describe the economic concept of real cost of some activity that is foregone to get the satisfaction from the other activity.
There is one more economic concept that is opportunity cost. Opportunity cost refers to the cost or benefit that must be give up by choosing some other alternative.
In our case, you have to decide whether you want to join accounting club or economics club and timings of both the clubs are same. Therefore, you have to choose one club and give up the other one. The cost of giving up is the opportunity cost.
Answer:
D. 76.6 %
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
<em>First Calculate the Contribution</em>
Contribution = Sales - Variable Costs
= (60,000 units × $ 12.40) - ($110,000+$30,000+$34,000)
= $744,000 - $174,000
= $570,000
<em>Then Calculate Contribution Margin Ratio</em>
Contribution Margin Ratio = $570,000 / $744,000 × 100
= 76.61290
= 76.6 % ( 1 decimal)