If Firms That Do Not Possess Valuable and Rare Resources

question 5

Multiple Choice

If firms that do not possess valuable and rare resources or capabilities face a cost disadvantage in obtaining these resources or capabilities compared to the firms that already possess them, these resources and capabilities are termed

• A) rare.
• B) valuable.
• C) imperfectly imitable.
• D) perfectly imitable.

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Definitions:

Cap And Trade

An environmental policy tool that sets a limit on emissions and allows companies to buy and sell permits to stay within those emission limits.

Emission Permits

Emission permits are allowances given to companies, allowing them to release a specific amount of pollutants into the environment, used as a tool for regulating environmental impacts.

Environmental Quality

The condition of the natural environment and its ability to support life and activities, often measured by factors such as air and water purity, and biodiversity levels.

Property Rights

Legal rights to possess, use, and dispose of assets or properties.