In the long run:
A)Imitation erodes differences in competition between firms
B)Competition erodes differences in profitability between firms
C)Cooperation erodes differences in profitability between firms
D)Firms erode differences between them through imitation

Question

Quizplus · Accepted Answer

Over time, competition can lead to a leveling of profitability between firms as they adapt to each other's strategies and best practices. This is in contrast to imitation, which may lead to a convergence of offerings and reduced differentiation, but does not necessarily impact profitability. Cooperation can also lead to similarities between firms, but may actually increase profitability through shared resources and knowledge. The statement in option D is not clear and does not align with the context of the question.

In the Long Run