Final answer:
Tommy is struggling to be cost competitive in order to maintain a competitive advantage in the market.
Step-by-step explanation:
The subject of this question falls under the category of Business. Tommy, the engineering manager at APC Systems, Inc., is facing the challenge of maintaining a competitive advantage in the market. He wants to hire and retain the best staff but high staff salaries can erode the company's profitability. However, passing along these higher costs to clients may result in losing business to lower-priced competitors. Tommy is struggling to be cost competitive.