When Resources and Capabilities Serve as a Source of Competitive

question 34

Multiple Choice

When resources and capabilities serve as a source of competitive advantage for a firm, the firm has created a(n) :

• A) strategic mission.
• B) inspiring vision.
• C) core competence.
• D) sustainable market niche.

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Definitions:

Herfindahl Index

A measure of market concentration and competition among firms within an industry, calculated by summing the squares of individual firms' market shares.

Four-Firm Concentration Ratio

A measure of market structure that indicates the combined market share of the four largest firms in an industry, used to assess the level of competition.

Market Power

The ability of a firm or group of firms to manipulate prices or output in a market.

Excess Capacity

The situation where a firm or an economy is producing less than its potential output, often indicating inefficiencies or a lack of demand.