The Resource-Based Model Assumes That Firms May Form a Competitive

question 33

True/False

The resource-based model assumes that firms may form a competitive advantage by having resources that are rare or costly to imitate.

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Definitions:

Variable Costs

Expenses that fluctuate with the level of output or activity, in contrast to fixed costs which remain constant.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Profit

The financial gain made in a transaction or business operation, calculated as the excess of revenue over expenses.

Unit Variable Costs

The costs associated with producing one unit of a product or service, which vary directly with the volume of production.