Question

Anything that a firm does especially well compared to rival firms is referred to as

A) competitive advantage.
B) comparative disadvantage.
C) opportunity cost.
D) unsustainable advantage.
E) an external opportunity.

Answer 1

Competitive advantage refers to anything that a firm does especially well compared to rival firms. It allows a company to outperform its competitors and achieve higher profits.

Step-by-step explanation:

Competitive advantage refers to anything that a firm does especially well compared to rival firms. It can be a unique product, superior customer service, efficient production methods, or cost advantages. It allows a company to outperform its competitors and achieve higher profits.

For example, if a clothing brand has a reputation for high-quality and trendy designs, it may have a competitive advantage over other brands that offer similar products but at a lower quality.

In summary, competitive advantage is the advantage a firm has over its rivals in terms of its strengths and capabilities.