Final answer:
Bates' capabilities in the tool industry are imperfectly imitable.
Step-by-step explanation:
The fact that it would be difficult and costly for firms to match Bates' capabilities in the tool industry indicates that these capabilities are imperfectly imitable. Imperfectly imitable capabilities are those that are difficult for other firms to replicate or imitate due to factors such as unique knowledge, complex processes, or specialized resources.
The fact that it would be difficult and costly for firms to match Bates' capabilities in the tool industry indicates that these capabilities are imperfectly imitable. This term refers to a situation where the skills, knowledge, processes, or relationships that lead to a competitive advantage for a company cannot be easily replicated by others.
The unique capabilities of Bates likely stem from a unique combination of resources, historical conditions, or complex internal and external relationships that other firms cannot easily duplicate without incurring high costs. Such capabilities provide Bates with a strong competitive advantage in the market.
Therefore, the correct answer is A) imperfectly imitable.