Which of the Following Is NOT an External Event That

question 58

Multiple Choice

Which of the following is NOT an external event that reveals the "dark side" of core capabilities?

• A) A new competitor figures out a better way to serve the firm's customers.
• B) New technologies emerge and replace those used by the firm.
• C) A firm changes its focus to a new core competence.
• D) Political or social events shift the foundation of current core capabilities.

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Definitions:

Natural Monopoly

A natural monopoly occurs when a single firm can supply the entire market at a lower cost than could be achieved by multiple firms due to economies of scale.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Imperfect Competitors

Firms or entities in a market structure where they have some control over the price of their products, due to lack of perfect competition.

Natural Monopolies

Market situations where due to high fixed costs or unique resources, a single firm can supply a product or service more efficiently than any potential competitor, often resulting in regulation.