In a highly competitive market, how will a firm most likely produce positive economic rents?
A)Devising a new marketing plan that will gain market share from competitors
B)Renegotiating financing terms with the firm's funding sources
C)Introducing new technology that creates manufacturing efficiencies
D)Purchasing one of its competitor firms

Question

Quizplus · Accepted Answer

Introducing new technology that creates manufacturing efficiencies can lead to cost savings and increased productivity, allowing the firm to produce its goods or services at a lower cost than competitors. This can create a competitive advantage and result in positive economic rents. The other choices may also lead to increased profitability, but may not necessarily result in economic rents.

In a Highly Competitive Market, How Will a Firm Most