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What Is the Difference Between a Tangible and an Intangible

question 7

Essay

What is the difference between a tangible and an intangible resource? Give an example of each? Which of these types of resources is most likely to lead to competitive advantage? Why?


Definitions:

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of resources within a particular country when choosing one economic action over others.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Absolute Advantage

The ability of a party to produce a greater quantity of a good, product, or service than competitors using the same amount of resources.

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