In order to achieve a competitive advantage, a firm should be able to:A) keep its producer surplus low. B) increase the difference between consumer surplus and its profits. C) increase its payable turnover. D) increase the difference between the value created and the cost to produce it.

Question

Business

Charlize Gross

23 February, 10:57

In order to achieve a competitive advantage, a firm should be able to:A) keep its producer surplus low. B) increase the difference between consumer surplus and its profits. C) increase its payable turnover. D) increase the difference between the value created and the cost to produce it.

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Answers (1)

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Kyler Boone · Answer 1

D) increase the difference between the value created and the cost to produce it.

Explanation:

Competitive advantage is the edge a business has over its competitors through offering of greater value to consumers or by reducing price or offering goods and services with immense benefits or satisfaction that justifies your price.

Sources of competitive advantage includes.

1. When a business have access to raw materials.

2. Access to high skilled labour.

3. Easy access to new technology.

4. High entry barrier to the industry, etc.