Final answer:
The ability to offer greater value than one's competitors is known as competitive advantage, which can come from factors such as economies of scale, strong brand recognition, and improvements in technology and product quality.
Step-by-step explanation:
The ability to offer greater value than one's competitors is referred to as competitive advantage. This concept encompasses a range of factors that can position a company above its competitors. For instance, an industry may have economies of scale that are quite small in comparison to market demand, allowing companies that can scale up operations efficiently to have a cost advantage.
Brand recognition developed over many years can also contribute to a competitive advantage. Strong brand names lead to customer loyalty and can help a business stand out against its competitors. Additionally, advancements in technology that reduce production costs, improvements in product quality, and increased dependence on consumer demand can all lead to a competitive advantage by shifting supply and demand curves in favor of the business.