The most important of the factors that make a firm successful and that can be controlled by the firm's owners and managers are
A)the establishment of trademarks for its products and the aggressive defence of those trademarks.
B)lobbying government to erect or enforce entry barriers in its markets and the marketing of its products as widely as possible.
C)the differentiation of its products and the production of products at a lower average cost than competing firms.
D)the selection of the prices of its products and the selection of the most productive and loyal employees.

Question

Quizplus · Accepted Answer

The differentiation of products and achieving low average production costs are key factors that can be controlled by firm owners and managers. By differentiating products, a firm can create a unique value proposition and distinguish themselves from competitors. Producing at a lower average cost helps firms to operate more efficiently and increase profit margins. Trademark establishment and government lobbying can also contribute to a firm's success, but these factors are not entirely under the firm's control. Selection of pricing and productive employees are also important, but these do not necessarily set a firm apart from competitors or contribute to low production costs.

The Most Important of the Factors That Make a Firm