In general,as long as the number of firms that possess a particular valuable resource or capability is less than the number of firms needed to generate perfect competition dynamics in an industry,that resource can be considered rare and a potential source of competitive advantage.

Question

Quizplus · Accepted Answer

This statement is true as per the definition of rarity in the context of competitive advantage. A resource or capability is considered rare if it is not possessed by many firms in the industry, which gives an opportunity for the firms that possess it to gain a competitive advantage over others. If the number of firms possessing the resource or capability is equal to or more than the number needed to generate perfect competition dynamics, then it cannot be considered rare and may not provide a sustainable competitive advantage.

In General,as Long as the Number of Firms That Possess