________ measures of competitive advantage compare a firm's level of return to its cost of capital instead of to the average level of return in the industry.
A) Economic
B) Accounting
C) Strategic
D) Sustainable

Question

Quizplus · Accepted Answer

Economic measures of competitive advantage capture the financial efficiency of a firm and their ability to generate profits that exceed their cost of capital. This goes beyond just comparing to the average level of return in the industry and takes into consideration the specific costs and investments made by the firm.

________ Measures of Competitive Advantage Compare a Firm's Level of Return