A firm's ____,relative to that of other firms,is generally regarded as the most important determinant of competitiveness.

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Productivity is a firm's efficiency in utilizing its resources to produce goods or services. A higher level of productivity enables a firm to produce more output with the same amount of input, thereby reducing costs and increasing profitability. This competitive advantage over other firms is the most important determinant of competitiveness. Income level, tastes and preferences, and governmental regulation may also affect a firm's competitiveness, but to a lesser extent.

A Firm's ____,Relative to That of Other Firms,is Generally Regarded