Final answer:
The correct answer is 'c. rare, costly to imitate' based on the Resource-Based View, which outlines the characteristics of resources that lead to a sustainable competitive advantage, such as a well-respected brand name or a patented invention.
Step-by-step explanation:
To attain competitive advantage, resources and capabilities need to be non-substitutable, valuable, rare, and costly to imitate. This corresponds to option 'c' rare, costly to imitate, which is derived from the Resource-Based View (RBV) of the firm. For a resource to contribute to a sustainable competitive advantage, it must be not only valuable but also unique and not easily replicated by competitors.
An example of such a resource could be a well-respected brand name that has been developed over many years or a patented invention that gives exclusive rights to the firm. Conversely, a popular restaurant recipe that is easy to copy would not confer a sustainable advantage.
Considering public goods, they are typically nonexcludable and non-rival, which makes them challenging for market producers to sell to individual consumers. However, the non-substitutability and rarity are not typical characteristics of public goods but are indeed crucial for private resources seeking competitive advantage.
The notion of absolute advantage and gain from trade relate to the efficiency and benefits a country obtains through specialization and international trade, which may leadto a dynamic comparative advantage when a country specializes in certain parts of the value chain and benefits from economies of scale.
The correct answer is 'c. rare, costly to imitate'.