Which Model Is Best Used to Understand the Ways in Which

question 20

Multiple Choice

Which model is best used to understand the ways in which information technologies allow a firm to both attain and sustain a competitive advantage?

• A) Porter's Competitive Forces
• B) Porter's Value Chain
• C) The Information Systems Strategy Triangle
• D) The Network Effect
• E) The Resource-Based View

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Definitions:

Average Fixed Cost

The fixed costs of production (those that do not change with the level of output) divided by the quantity of output produced.

Average Total Cost

The cost of producing one unit, calculated by dividing the entire production cost by the quantity of units made.

Average Variable Cost

The variable cost of production (costs that change with the level of output) divided by the number of units produced, showing the variable cost per unit.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.