The Four Tests of a Resource's Competitive Power Are Often

question 12

Multiple Choice

The four tests of a resource's competitive power are often referred to as the

• A)organizational capability metric analysis.
• B)SWOT analysis.
• C)competitive advantage sustainability test.
• D)SCIR test,which asks if a resource is sustainable,competitive,internalized,and reproducible.
• E)VRIN test,which asks if a resource is valuable,rare,inimitable,and nonsubstitutable.

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Definitions:

Long Run

A timeframe during which all production factors and expenses can change, permitting adjustments to all inputs.

Allocative Efficiency

A state of the economy in which production is in accordance with consumer preferences; every good or service is produced up to the point where the last unit provides a utility to consumers equal to the cost of producing it.

Consumer Surplus

The difference in the amount consumers are prepared and have the means to pay for a service or good compared to the amount they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often depicted as the area above the supply curve and below the market price.