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Economic Moat |
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Economic Moat Informal; a competitive advantage over other companies in the same industry. This comparative advantage may be cost-related; that is, one company may be able to produce a good or service more cheaply and can therefore sell it for less. However, the economic moat may also be intangible; one company's name recognition may encourage more consumers to buy its products. A "wide" or "deep" economic moat indicates a company with an economic moat difficult to overcome. See also: Comparative Advantage, Absolute Advantage. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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