Final answer:
If firms face a cost disadvantage in obtaining resources or capabilities that are not readily duplicated, these are termed imperfectly imitable. This characteristic is crucial for firms trying to establish a competitive advantage in business and international trade conditions such as comparative advantage and economies of scale. Option c.
Step-by-step explanation:
If firms that do not possess valuable and rare resources or capabilities face a cost disadvantage in obtaining these resources or capabilities compared to firms that already possess them, these resources or capabilities are termed imperfectly imitable option c. Resources and capabilities are considered imperfectly imitable when there is something unique about them that cannot be easily duplicated or replicated by other firms. This could be due to unique historical conditions, causal ambiguity, or social complexity. For instance, a company's brand reputation, built over decades and associated with specific events or personalities, cannot be copied overnight.
Comparative advantage and economies of scale are important concepts in international trade, where firms leverage their unique resources and capabilities to compete. However, smaller economies may struggle with these factors due to their limited resources. The existence of scarcity implies that resources are limited and not every desire can be satisfied, leading to the importance of making choices regarding resource allocation.
Additionally, public goods such as national defense pose a challenge for private companies to produce and charge for because they are non-excludable and non-rivalrous. In contrast, private goods like a slice of pizza are excludable and rivalrous because consumption by one person prevents concurrent consumption by others.