Resources and Capabilities Can Generate Higher Profits

question 30

Multiple Choice

Resources and capabilities can generate higher profits

• A)if competition is fierce.
• B)if the competitive advantage they generate is sustained for some years.
• C)only if governments allow firms to share resources.
• D)only where cartels are effectively allowed.

Utilize the high-low method to estimate variable and fixed components of costs.

Interpret and use profit-volume (PV) charts and margin of safety for business analysis.

Understand the concept of the relevant range and its impact on cost behavior.

Comprehend how different types of charts (e.g., Profit-volume chart, Cost-volume-profit chart) are used in managing operations and making financial decisions.

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Definitions:

Practical Intelligence

A type of intelligence that involves the ability to solve everyday problems through practical understanding and reasoning.

Novel Solutions

Innovative or original methods or ideas developed to solve problems.

Analytic Intelligence

One component of Sternberg's triarchic theory of intelligence, referring to the ability to analyze, evaluate, judge, or compare and contrast.

Reasoning Skills

The ability to think, form judgments, and draw conclusions logically and systematically.