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:

Nominal Variables

Variables measured in monetary terms that have not been adjusted for inflation, representing current prices.

Real Variables

Economic variables measured in physical units, reflecting quantities and qualities, rather than their monetary value, often adjusted for inflation.

Money Supply

The overall financial resources at a certain point in time within an economy, encompassing all cash, coins, and checking and savings account balances.

Money Demand

The desire to hold cash or liquid assets, influenced by factors such as interest rates, income levels, and economic activity.