Final answer:
The correct answer is D) sustainable distinctive competencies. These are resources and capabilities that are valuable, rare, and costly to imitate, allowing a firm to sustain a competitive advantage and support barriers to entry.
Step-by-step explanation:
Resources and capabilities that are valuable, rare, and costly to imitate are best described as sustainable distinctive competencies. Such resources create a competitive advantage that can be sustained over time, preventing others from easily replicating them. This positions a firm in a manner that can deter or prevent potential competitors from entering the market. Barriers to entry, such as economies of scale, legal restrictions, and control of a resource, support the maintenance of these competencies by protecting the firm from new competitors. In contrast, distinctive competencies without sustainability could be more easily duplicated, reducing the long-term strategic benefit. Therefore, the correct answer is D) sustainable distinctive competencies.