Companies that consistently earn rates of return above the competitive floor in the industry are considered to possess a
A)dominant market share.
B)niche market.
C)competitive advantage.
D)monopolistic advantage.

Question

Quizplus · Accepted Answer

Companies that consistently earn rates of return above the competitive floor in the industry are considered to possess a competitive advantage. This means they have some unique advantage or attribute that allows them to outperform their competitors and maintain profits. It could be related to their products, services, production processes, or other factors. A dominant market share may result from a competitive advantage but is not the same thing. A niche market may also result from a competitive advantage, but it is not a requirement. Monopolistic advantages refer to situations where a company has a monopoly or near-monopoly in the market, which is different from a competitive advantage.

Companies That Consistently Earn Rates of Return Above the Competitive