Given your understanding of the definition of Added Value, when will your firm's added value be zero?
A) When the suppliers do not want to negotiate.
B) When the competitors offer a perfect substitute of your products and have the same supplier opportunity cost
C) When the firm cost is equal to supplier opportunity cost
D) When customer willingness to pay is equal to price
E) Added value can never be zero

Question

Quizplus · Accepted Answer

Added value is zero when competitors offer a perfect substitute at the same supplier opportunity cost, meaning the firm does not provide any unique value that differentiates it from competitors.

Given Your Understanding of the Definition of Added Value, When