In the Context of Sustainable Competitive Advantage, Unlike Rare Resources

question 20

Multiple Choice

In the context of sustainable competitive advantage, unlike rare resources, imperfectly imitable resources:

• A) are not controlled or possessed by many competing firms.
• B) are impossible or extremely difficult to duplicate.
• C) can be used by firms to improve their effectiveness and efficiency.
• D) need not be nonsubstitutable resources to produce a competitive advantage.

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Definitions:

Diminishing

Refers to the principle where increasing one input, while holding others constant, will eventually yield lower per-unit returns.

Long Run

In economics, a period in which all factors of production and costs are variable, and firms can enter or exit the market.

Resources Fixed

A situation in an economic model where the availability of resources is constant and unchanging over time.

Output Variable

A variable that represents the result or outcome of a process or model.