Question

The key result of achieving a competitive advantage is __________.

A. An ability to sidestep government regulations.
B. An ability to consistently do something of high value which one's competitors cannot replicate quickly or do as well.
C. An ability to drive the competition out of business and to make extraordinarily high profits.
D. An ability to establish a monopolistic market position.
E. An ability to dictate consumer needs and preferences.

Answer 1

Achieving a competitive advantage results in the ability to consistently offer high-value goods or services that are difficult for competitors to replicate, thus allowing a firm to command above-normal profits.

Step-by-step explanation:

The key result of achieving a competitive advantage is B. An ability to consistently do something of high value which one's competitors cannot replicate quickly or do as well. Firms strive for a competitive edge to earn higher profits by producing products more cheaply or creating products with characteristics consumers want. A competitive advantage does not inherently entail avoiding government regulations, driving competitors out of business, establishing a monopolistic position, or dictating consumer needs and preferences, as these strategies can have ethical, legal, and practical implications that may not align with sustaining a long-term competitive advantage. Instead, earning above-normal profits typically stems from innovation, effective cost management, and the distinction of goods and services that appeal to consumers and are not easily duplicated by others.