If a Resource Is Rare or Unique to a Particular

question 90

Multiple Choice

If a resource is rare or unique to a particular firm,then

• A) the industry in which the firm operates will experience perfect competition.
• B) the mobility of the resource will be high.
• C) the firm will be able to maintain a competitive advantage for a long period.
• D) it will be less costly for rivals to imitate the resource.

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Definitions:

Tax Rate

Tax rate refers to the percentage at which an individual or corporation is taxed by the government on their income or profits.

Income Tax Payable

The amount of income tax a company or individual owes to the government but has not yet paid at a specific date, found on the balance sheet.

Pre-Tax Book Income

Earnings of a business before taxes are deducted, as reported in its financial books.

Tax Depreciation

The allocation of an asset's cost over its useful life for the purposes of tax deductions, according to IRS rules and schedules.