In a competitive market, the firm has a difficult time capturing value due to the large number of rivals. But it can be successful at capturing value if the:
A) firm's cost curves are higher than rivals.
B) firm's superior productivity is based on value of the whole organization.
C) firm's superior productivity is based on selected components of superiority within the firm.
D) demand for the firm's product is inelastic.

Question

Quizplus · Accepted Answer

The firm can capture value in a competitive market by having superior productivity that is based on the value of the whole organization, rather than just selected components. This allows the firm to differentiate itself from rivals and provide value to customers that they cannot find elsewhere. The other choices do not guarantee success in capturing value in a competitive market.

In a Competitive Market, the Firm Has a Difficult Time