How Are the Critical Assumptions of the Resource-Based Model of a Firm

question 84

Multiple Choice

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

• A) In the resource-based model, resources are freely available and mobile, whereas in the perfectly competitive industry structure, resources are highly immobile.
• B) In perfect competition, it is extremely difficult to replicate the resource bundles of a firm, whereas in the resource-based model, it is extremely easy to imitate them.
• C) In perfect competition, all firms have access to the same capabilities, whereas in the resource-based model, resource differences exist between firms in the same industry.
• D) In the resource-based model, only physical assets of a firm are considered as resources, whereas in perfect competition, a firm's capabilities and competencies are also considered as resources.

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Definitions:

Unpleasant Circumstances

Situations or conditions that are difficult, uncomfortable, or distressing to experience or endure.

Inter-team Group Technique

A method aimed at enhancing cooperation and efficiency among different teams within an organization by improving communication and resolving conflicts.

Consensus

A group decision that has the expressed support of most members.

Authority Rule

A system or principle governing conduct or activity, where decisions are made based on hierarchical position or statutory power.