The Resource-Based Model of the Firm Argues That

question 84

Multiple Choice

The resource-based model of the firm argues that

• A)all resources have the potential to be the basis of sustainable competitive advantage.
• B)resources alone can be a source of sustainable competitive advantage.
• C)the key to competitive success is the structure of the industry in which the firm competes.
• D)resources that are valuable, rare, costly to imitate, and non-substitutable form the basis of a firm's core competencies.

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Definitions:

Marginal Cost

The supplementary expenditure brought on by the creation of one more unit of a good or service.

Total Variable Cost

The sum of all variable expenses that are incurred in the direct production of goods or services.

AVC

Average Variable Cost, which is the variable cost per unit of output.

Marginal Cost

The production cost for one more unit of a product.