Final answer:
The statement is true; a company has competitive advantage when its products are more appealing to its customers, as this typically leads to increased profit and market share by outperforming competitors.
Step-by-step explanation:
True, a company has competitive advantage when its products are more appealing to its chosen customers. This is because these products stand out in the marketplace by offering greater value or by meeting customer needs more effectively than competitors' products. Competitive advantage can come from offering better quality, unique features, lower prices, or a combination of these factors.
Competition from firms with better or cheaper products can reduce a business's profits, and may potentially drive it out of business. Conversely, those businesses which do offer better or cheaper products can increase profits, provide better wages for their employees, and benefit the nation overall as the gains often outweigh the losses.
The concept of competition is critical to understanding market dynamics, as highlighted by the idea that executives might prefer having little or no competition. True competitiveness in a market requires firms to innovate and continually improve their offerings to maintain or gain a competitive advantage.