a) Value creation relates to all the following except:

EVC = WTP - Cost

Varies across firms.

Consumers may pay one price with one firm, but another price from the firms competitor.

Economic value created is similar from firm to firm.

b) All of the following are ways to describe competitive advantage except

If a firms competitive advantage increases, either its economic value creation increased, or its competitors economic value creation decreased.

If a firms competitive advantage increases, that means that either its economic value creation decreased, or its competitors economic value creation increased.

Reflects the strategic health of firms that reinvest in their business.

Competitive advantage does not change based on random events.