True Moto Corp

question 32

Multiple Choice

True Moto Corp. (TMC) is a leading automobile company. The company has been able to sustain its competitive advantage primarily due to its high-quality and efficient electric motors. Most of its competitors have failed to develop similar electric motors at a reasonable price. Which of the following resource attributes listed in the VRIO framework has helped TMC sustain its competitive advantage?

• A) resource mobility
• B) inexhaustible nature
• C) intangibility of the company's resource
• D) high costs involved in imitation

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Definitions:

Total Utility

The entire satisfaction or pleasure a consumer obtains from consuming a given quantity of goods or services.

Income

The income earned either from work or through investments, typically on a regular basis.

Consumer Equilibrium

The state where the consumer's income is fully allocated to the purchase of goods and services in a way that maximizes their utility or satisfaction.

Indifference Curve

A graph representing a set of bundles of goods between which a consumer is indifferent, showing preferences of consumption.