A Firm with Valuable, Rare, and Hard-To-Imitate Resources and Capabilities

question 89

Multiple Choice

A firm with valuable, rare, and hard-to-imitate resources and capabilities will:

• A)​Always have a sustained competitive advantage.
• B)​Have difficulty sustaining a competitive advantage if it is not well organized.
• C) ​Outsource all activities except for core activities.
• D) ​Be highly susceptible to commoditization.

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Definitions:

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they receive by selling it at the market price.

Price Level

The average of the current prices of goods and services in an economy, which can be compared over time to assess inflation or deflation.

Value Creation

The process through which businesses or organizations generate added value for customers, stakeholders, or society at large, often leading to competitive advantage.

Suppliers

Businesses or individuals that provide goods or services to another entity, typically within a supply chain or production process.