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 or capability can be considered ________ and a potential source of competitive advantage.
A) valuable
B) rare
C) inimitable
D) un-substitutable

Question

Quizplus · Accepted Answer

The statement is describing the VRIO framework, which suggests that for a resource or capability to be a potential source of competitive advantage, it must be valuable, rare, inimitable, and non-substitutable. The statement specifically mentions that the resource or capability is valuable, but the condition for a potential source of competitive advantage is that it is also rare. Therefore, the best choice is B, rare.

In General, as Long as the Number of Firms That