Under Which of the Following Conditions Is a Competitive Attack

question 51

Multiple Choice

Under which of the following conditions is a competitive attack by the stronger of two rivals more likely to produce sustained competitive advantage for that rival?

• A)high market commonality  
• B)high competitive autonomy  
• C)high resource similarity  
• D)low resource similarity

---

Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on the relationship between estimated overhead costs and an allocation base.

Variable Manufacturing Overhead

Costs that vary with production volume, such as utilities and indirect materials.

Machine-Hours

A measure of the time that a machine is operated, used as a way to allocate machine-related costs to products.

Fixed Manufacturing Overhead

Indirect and constant production costs that are not affected by the level of goods or services produced, including factory rent, salaries of supervisory personnel, and utility costs.