A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
举一反三
- When an individual firm in a competitive market increases its production, it is likely that the market price will fall.
- A competitive strategy may be defined as a long-term plan of action that a company devises towards achieving a____ over its competitors after examining the strengths and weaknesses of the latter and comparing them to its own.( ) A: niche market B: competitive advantage C: stronger customer loyalty D: higher market share
- If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that A: it has relied more on debt than equity to finance its operations. B: the firm is likely to have trouble paying its short-term debts when they come due. C: its total liabilities are less than its owners' equity. D: the firm has expenses that are exactly 75% of its gross profit.
- Growth is difficult to sustain, unless a firm has a clear, sustainable competitive advantage, market forces will eventually erode growth. （ ）
- A firm in a perfectly competitive market will tend to expand its output as long as: A: its marginal revenue is positive. B: the market price is greater than the marginal cost. C: its marginal revenue is greater than the market price.