Successful firms focus their efforts on satisfying customer needs that:

• A. are identical to those of every other firm
• B. are not currently being met by competitors
• C. are unrelated to market demand
• D. require the highest production costs

Answer: (B)

Verified step by step guidance

1. Understand the concept of market demand and customer needs: Firms succeed by identifying and satisfying customer needs that create value in the market.
2. Recognize that if customer needs are identical to those of every other firm, competition is intense and differentiation is difficult, which may reduce a firm's success.
3. Consider that needs unrelated to market demand do not generate sufficient sales or profits, so focusing on these is not effective for a successful firm.
4. Analyze the importance of unmet customer needs: Firms that identify and satisfy needs not currently being met by competitors can gain a competitive advantage and attract customers.
5. Evaluate production costs: While costs matter, focusing solely on the highest production costs does not guarantee success; instead, meeting unmet needs efficiently is key.