The Main Implication of the Resource-Based View of Firm Is

question 42

Multiple Choice

The main implication of the resource-based view of firm is:

• A)The boundaries of the firm are determined by the firm's resources rather than by transaction costs
• B)The resources of the firm are the foundation for its capabilities
• C)Resources and capabilities are the principal basis for firm strategy and the primary source of profitability
• D)Ricardian rents are a more important source of firm profitability than monopoly rents

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Definitions:

Full Employment

This is a situation in an economy where all available labor resources are being used in the most efficient way possible, typically implying a very low unemployment rate.

Aggregate Demand Curve

A graphical representation that shows the total quantity of goods and services demanded across all levels of prices in an economy.

Loanable Funds Effect

A theory that describes the market interaction between the demand for and supply of loanable funds, influencing interest rates.

Real Balances Effect

The impact of price level changes on the purchasing power of consumers' money holdings, influencing their spending and saving behavior.