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Competitive Advantage. Def: When a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market.Profitability does not only vary across industries, but varies within a particular industry.A group of firms are in the same market if one firm\'s production, pricing, and marketing decisions materially affect the prices that other in the group can charge, except for perfectly competitive markets.A firms economic profitability 9448

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