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

question 23

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 are there 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:

Sherman Act

A basic antitrust legislation in the United States that outlaws practices leading to monopolies and encourages competitive conduct.

Corporations Convicted

Refers to the legal situation where a corporation is found guilty of a criminal offense by a court of law.

Fined

A penalty imposed for breaking a law, rule, or order.

Resale Price Maintenance

A practice where manufacturers and suppliers control or influence the price at which a product is sold by retailers, often to maintain price consistency or value.