GK
BUSINESS MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
when a company sells goods and services at a lower price than its competitors and still gains larger profits
|
|
|
when a business creates the efficient production of a specific product or service
|
|
|
business which operates internationally
|
|
|
helps companies determine how to gain a competitive edge and position themselves so customers buy from them, and only them
|
|
|
distinguishes an organization’s product or service from competitors due to certain unique characteristics
|
Detailed explanation-1: -The ability to create a good or service for a reduced opportunity cost is a benefit of comparative advantage. Companies with a comparative advantage can sell goods and services at lower prices than their competitors, resulting in higher sales margins and profitability.
Detailed explanation-2: -Comparative advantage is an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.
Detailed explanation-3: -Comparative advantage is a company’s ability to produce something more efficiently than a rival, which leads to greater profit margins. A differential advantage is when a company’s products are seen as both unique and of higher quality, relative to those of a competitor.
Detailed explanation-4: -The benefit of comparative advantage is the ability to produce a good or service for a lower opportunity cost. A comparative advantage gives companies the ability to sell goods and services at lower prices than their competitors, gaining stronger sales margins and greater profitability.
Detailed explanation-5: -Competitive versus comparative advantage They differ from one another in causation and methods used. For example, businesses seeking a better competitive advantage want to set themselves apart from other companies. In contrast, businesses seek to establish a comparative advantage because of economies of scale.