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Create more economic value than rival firms

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According to one author, a firm has a competitive advantage when it is able to create more economic value than rival firms. In this case, economic value is simply the difference between the perceived benefits gained by a customer who purchases a firm's products or services and the full economic cost of these products or services.Thus, the size of a firm's competitive advantage is the difference between the economic value a firm is able to create and the economic value its rivals are able to create. Does this observation hold true in health care? Why/not?

Reference no: EM13865990

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