A Firm's Dynamic Capabilities Can Actually Create Changes in the Market

question 75

True/False

A firm's dynamic capabilities can actually create changes in the market in which it competes.

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Definitions:

Higher Profits

An increase in the difference between a company's revenues and its expenses.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Marginal Cost

The boost in comprehensive expenditure that comes from the generation of one more unit of a product or service.

Socially Efficient

A situation in which an allocation of resources maximizes total social welfare, taking into account both the benefits and costs to society as a whole.