According to the Resource-Based View of the Firm

question 39

Multiple Choice

According to the resource-based view of the firm:

• A)Strategies are neither deliberate nor emergent
• B)Competitors may all develop the same competitive strength
• C)The environment offers significant challenges to be overcome
• D)Organizations are bundles of resources
• E)None of these

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with cheaper ones.

Relative Price

Relative Price is the price of one good or service compared to another, usually reflecting its value in terms of another item rather than its absolute price in currency.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point.

Marginal Utility

The heightened satisfaction or value achieved by consuming one additional unit of a product or service.