The main implication of the resource-based view of firm is:
A)The boundaries of the firm are determined by the firm's resources rather than by transaction costs
B)The resources of the firm are the foundation for its capabilities
C)Resources and capabilities are the principal basis for firm strategy and the primary source of profitability
D)Ricardian rents are a more important source of firm profitability than monopoly rents

Question

Quizplus · Accepted Answer

The resource-based view of firm argues that a firm's resources and capabilities are the primary basis for its strategy and the main source of profitability. This view suggests that firms should focus on developing and leveraging unique and valuable resources and capabilities that are difficult for competitors to imitate, rather than relying on market power or other external factors. It also implies that the boundaries of the firm are determined by the availability and quality of these resources, rather than transaction costs or other factors.

The Main Implication of the Resource-Based View of Firm Is