Which of the Following Statements About Technology Is True

question 23

Multiple Choice

Which of the following statements about technology is true?

• A) Technology alone is enough to provide sustainable competitive advantage to a firm.
• B) Technology plays a marginal role in creating strategic differences.
• C) Technological improvements are not important in strengthening a firm's strategic advantages.
• D) Technological improvements can often be copied by rivals, leading to a profit-eroding arms race.
• E) Technology cannot be used by late entrants to gain a share of the industry.

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Definitions:

Utility Function

A mathematical representation of how a consumer ranks different bundles of goods such that the higher the function's value, the higher the level of satisfaction.

Price Increase

A situation where the cost of goods or services rises over a period.

Loss of Income

A reduction or complete stoppage of earnings that an individual or entity faces due to various factors like unemployment, disability, or business interruption.

Cigars

Typically a tightly rolled bundle of dried and fermented tobacco that is smoked, considered a luxury good in many cultures.