Non-Equity Strategic Alliances Exist When Two or More Firms Develop

question 26

True/False

Non-equity strategic alliances exist when two or more firms develop contractual relationships to share some of their unique resources and capabilities to create a competitive advantage.

---

Definitions:

Marginal Cost

The incremental cost involved in producing an additional unit of a product or service.

Natural Monopolist

A single supplier in a market that can supply the entire market at a lower cost than any combination of two or more suppliers.

Socially Efficient

A situation in which a market or economy allocates resources in a way that maximizes the overall welfare of society.

Natural Monopolist

A company that can provide goods or services at a lower cost than any competitors can, due to economies of scale, often leading to a monopoly in the market.