Question

One of the important conditions that a firm must meet in order to gain a sustainable competitive advantage with its capital is:

a. the firm's resources must be imperfectly imitable.
b. the firm's product prices must be high.
c. the firm's production technology should be obsolete.
d. the firm's organization must be highly centralized.
e. the firm's overhead costs must be high.

Answer 1

One of the important conditions for a firm to gain a sustainable competitive advantage with its capital is that the firm's resources must be imperfectly imitable.

Step-by-step explanation:

In order to gain a sustainable competitive advantage with its capital, a firm must meet certain conditions. One of the important conditions is that the firm's resources must be imperfectly imitable. This means that the firm's resources should be difficult for competitors to replicate or imitate. For example, if a firm has unique technology, patents, or exclusive access to rare resources, it can create a barrier for competitors to enter the market or replicate its success.