The resource similarity of two firms:
A)Indicates how likely they are to have similar competitive actions.
B)Means that the firms will eventually end of colluding.
C) Is unimportant if the firms have little market commonality.
D) All of the above.

Question

The resource similarity of two firms:
A)Indicates how likely they are to have similar competitive actions.
B)​Means that the firms will eventually end of colluding.
C) ​Is unimportant if the firms have little market commonality.
D) ​All of the above.

Quizplus · Accepted Answer

Resource similarity refers to the extent to which two firms have comparable resources and capabilities. This similarity can lead to similar competitive actions, such as both firms introducing new products or engaging in price wars. However, it does not necessarily lead to collusion or other unethical behavior. The importance of resource similarity depends on the degree of market commonality between the firms. If they are competing in different markets, resource similarity may not be relevant.

The Resource Similarity of Two Firms