One of the Ways in Which a Firm Makes It

question 73

Multiple Choice

One of the ways in which a firm makes it more difficult for other firms to imitate its resources and capabilities is through:

• A)Direct duplication.
• B)Non-value-adding activities.
• C) Causal ambiguity.
• D) None of the above

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Definitions:

Average Variable Cost Curve

A graphical representation that shows the change in variable cost per unit of output as the level of production is altered.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to cost per unit of output decrease with increasing scale.

Average Fixed Costs

The constant expenses in production, which remain unchanged regardless of output levels, when divided by the volume of output created.

U-shaped

A description often used in economics to describe the graphical representation of a situation where certain costs initially decrease, reach a minimum, and then start to increase as output expands.