Final answer:
Businesses with a competitive advantage in market share, unit cost, or product performance are more profitable than businesses without any advantage in those areas because they can attract more customers, reduce costs, and generate higher sales and profits.
Step-by-step explanation:
Businesses with a competitive advantage in market share, unit cost, or product performance are more profitable than businesses without any advantage in those areas because they are able to attract more customers, reduce costs, and generate higher sales and profits.
For example, a company with a larger market share has a larger customer base, which allows it to sell more products or services and generate more revenue. Higher sales volume often leads to economies of scale, where the cost per unit decreases as production increases. This can lead to lower unit costs and higher profit margins.
Additionally, businesses with a competitive advantage in product performance can command higher prices for their products or services, as customers are willing to pay a premium for superior quality. This allows them to achieve higher profit margins than their competitors.