One Implication of the Resource-Based Perspective Is That

question 15

Multiple Choice

One implication of the resource-based perspective is that:

• A)Firms tend to adopt similar or close strategies
• B)Aligning strategies with resources and capabilities implies that firms emphasize their differences rather than their similarities
• C)Firms focus on building a stronger portfolio of capabilities than their rivals
• D)Firms focus on reducing their vulnerability by eliminating their weaknesses

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Definitions:

Variable Costs

Expenditures that change in direct correlation with the amount of output or production.

Profit-maximizing Output

The level of production at which a firm can achieve the highest possible profit, given its cost structure and the price of its products or services.

Fixed Cost

Costs that do not change with the level of output produced, such as rent or salaries.

Lawn-mowing

The process of cutting or trimming the grass in a yard or field to maintain a neat and uniform appearance.