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:

Output Variable

A variable that represents the result or outcome of a process or model.

Production Capacity

The maximum output that a company or economy can produce under normal conditions within a given period, often influenced by available resources and technology.

Diminishing Returns

A principle indicating that as more of a variable input is added to a fixed input, the added output from each additional unit of input will eventually decrease.

Resource Labor

The work force considered as an economic resource, emphasizing the skills and abilities workers bring to the economy.