In General, as Long as the Number of Firms That

question 28

True/False

In general, as long as the number of firms that possess a particular valuable resource or capability is less than the number of firms needed to generate perfect competition dynamics in an industry, that resource or capability can be considered rare and a potential source of competitive advantage.

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Definitions:

Increased Productivity

Enhanced efficiency and output of work processes, often achieved through optimization of resources, technology, and human capital.

Cost Reduction

The process of decreasing expenses or lowering financial outlays in order to improve profitability or efficiency.

Survival

The act of living through an event or situation, often one that is threatening or dangerous.

Social Inventions

Innovations or creations that primarily affect and modify social patterns, behaviors, or structures.