Once a Firm Has Developed Core Competencies That Can Create

question 17

True/False

Once a firm has developed core competencies that can create value, it can use these core competencies as a permanent competitive advantage.

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Definitions:

AVC

Average Variable Cost; the per unit variable cost associated with producing a good or service.

AFC

Average Fixed Cost; the total fixed costs of production divided by the quantity of output produced, illustrating how fixed costs spread out over produced units.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability to change production levels significantly.

Total Cost

The sum of fixed and variable costs incurred by a business in producing a certain level of output.