1. A firm decides to provide support services for its products for which its customers will pay extra. These services are not offered by its competitors and the firm does no incur commensurate supplier opportunity costs when it offers the services. This firm has achieved which of the following?
A) competitive advantage
B) added value
C) competitive advantage and added value
D) opportunity
2. Why is it important for companies to achieve competitive advantage?
A) Competitive advantage guarantees a firm’s long-term success.
B) Competitive advantages are impossible to overcome or imitate.
C) Competitive advantages help to improve financial returns.
D) Competitive advantages are inexpensive ways to build market power.