Even When a Particular Source of Cost Advantage Is Rare

question 78

True/False

Even when a particular source of cost advantage is rare, it must be costly to imitate in order to be a source of sustained competitive advantage.

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Definitions:

Average Total Cost

The total cost divided by the total quantity produced, representing the cost per unit of output.

Marginal Revenue

The uplift in revenue achieved by marketing an additional unit of a product or service.

Marginal Cost

The cost incurred by producing one additional unit of a product, a key concept in economic decision-making regarding production levels.

Short-Run Supply Curve

A graphical representation that shows the quantity of goods a firm is willing and able to produce and sell at different price levels over a short period, not allowing for all factors of production to vary.