If a resource or capability is valuable and rare but not costly to imitate, exploiting this resource will generate a(n)
A) sustained competitive advantage.
B) perfectly competitive environment.
C) temporary competitive advantage.
D) environment characterized by competitive parity.

Question

Quizplus · Accepted Answer

If a resource or capability is valuable and rare but not costly to imitate, it can generate a temporary competitive advantage. However, since it is not cost-prohibitive for competitors to imitate, the advantage is not sustainable over the long term.

If a Resource or Capability Is Valuable and Rare but Not