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Discuss the Questions Underlying the VRIO Framework and Use These

question 33

Essay

Discuss the questions underlying the VRIO framework and use these questions to differentiate between a simple distinctive competence and a sustained distinctive competence.


Definitions:

Variable Cost

A cost that changes in direct proportion to changes in the level of production or sales volume.

Total Fixed Cost

The sum of all constant expenses that a company incurs, regardless of the manufacturing or sales volume.

Relevant Range

The range of activity or volume over which the assumptions about fixed and variable cost behavior hold true.

Napkins

Paper or cloth products used at the table for wiping the mouth and fingers while eating.

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