A Company's Competitive Advantage Is More Durable When

question 63

Multiple Choice

A company's competitive advantage is more durable when

• A) barriers to imitation are low and there are few capable competitors.
• B) barriers to imitation are high and there are many capable competitors.
• C) barriers to imitation are high.
• D) the industry is stable and there are many capable competitors.
• E) the industry is stable and barriers to imitation are low.

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Definitions:

Defensive Medicine

Practice by healthcare providers who order tests, procedures, or visits, or avoid certain high-risk patients or procedures, primarily to reduce litigation risk, rather than to further the patient's health.

Moral Hazard

A scenario in which an individual engages in risky behavior, knowing they won't have to fully deal with the outcomes of their actions.

Principal-Agent Problem

A dilemma in economics and organizational theory where one party (the agent) is expected to act in the best interest of another (the principal) but may have different goals or information asymmetry.

Preventive Medicine

Medical practices aimed at preventing diseases or conditions rather than curing them, including vaccinations, lifestyle advice, and regular screenings.