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 defense 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 production at a lower average cost are key factors that give a firm a competitive advantage in the market. Establishing trademarks, marketing products widely, lobbying government to erect barriers to entry and selecting the prices of products are factors that may contribute to a firm's success but they are not as crucial as the ability to differentiate products and produce at lower costs than competitors. Selecting the most productive and loyal employees is important but it is not as significant as the other factors mentioned.

The Most Important of the Factors That Make a Firm