A company has higher quality products and a better reputation than its competito

Question

A company has higher quality products and a better reputation than its competitors. What can you conclude about this company?

Question 7 options:

A. This company has a temporary competitive advantage.

B. This company has a competitive advantage.

C. This company has higher profits per unit than competitors.

D. None of the above.

A. This company has a temporary competitive advantage.

B. This company has a competitive advantage.

C. This company has higher profits per unit than competitors.

D. None of the above.

Explanation / Answer

B.) This company has a competitive advantage.

Explanation: If the company has higher quality products and also better reputation than its competitors in the market, then it does not necessarily mean that it will; have a higher profit per units sold. While this ambition can be achieved through either temporary or permanent competitive advantage both. Hence, option B is correct.

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