Which Two Tests of a Resource's Competitive Power Determine Whether

question 109

Multiple Choice

Which two tests of a resource's competitive power determine whether a company's competitive advantage can be sustained in the face of active competition?

• A) Whether the resource or capability is competitively valuable and/or is something that rivals lack
• B) Whether the resource or capability is rare and/or is hard to copy
• C) Whether the resource or capability is easy to copy
• D) Whether the resource or capability is competitively valuable and/or there are good substitutes available for the resource
• E) Whether the resource or capability is hard to copy and/or can be trumped by different types of resources and capabilities

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Definitions:

Social Costs

The total cost to society, including both private costs borne by individuals and external costs affecting others not directly involved in a transaction.

Circular Flow Model

An economic model depicting how money moves through an economy between producers and consumers, illustrating the interconnectedness of different sectors.

Capital Goods

Long-term assets used by businesses to produce goods and services, such as buildings, machinery, and equipment.

Pierre-Joseph Proudhon

A French socialist philosopher and politician, best known for his declaration that "property is theft" in the context of his critique of the social injustices of his time.