If Employees' Skills Are Idiosyncratic and Rare (A Source of Resource-Based

question 16

True/False

If employees' skills are idiosyncratic and rare (a source of resource-based advantage), they will lack bargaining power because the cost of replacing them is low for the firm.

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Definitions:

Patents

Legal documents granted by the government that give an inventor exclusive rights to make, use, or sell an invention for a certain period of time.

Imitation

The act of copying or mimicking the strategies, products, or processes of individuals or enterprises, often seen as a way to gain a competitive advantage or innovate.

Fast-Second Strategy

A business approach where companies wait to see which innovations prove viable and then quickly follow with improvements and cost reductions.

Collusion

A situation in which firms act together and in agreement (collude) to fix prices, divide a market, or otherwise restrict competition.