Which one is not a necessary condition for competitiveness of a firm ?
Comparable quality of the product with that of rivals
Competitive price with rivals
Adequate returns to the firm
Economical use of resources by the firm
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC SO-Steno – 2017
Competitiveness of a firm means its ability to perform successfully in the market against rivals. Necessary conditions for this often include offering comparable or superior quality (A), competitive pricing (B), and efficient use of resources (D) to control costs and improve quality. Adequate returns (profitability) are typically an outcome or consequence of being competitive, rather than a prerequisite for competing. A firm might be highly competitive (e.g., gaining market share) even while making low or negative returns initially due to strategic pricing or heavy investment.