For a competitive advantage to exist:
A)There must be weak and strong players in the industry in terms of capability endowments
B)There must be some imperfection in the market
C)There must be the so-called "pure and perfect competition"
D)Causal ambiguity has occurred

Question

Quizplus · Accepted Answer

A competitive advantage exists when a company can offer a product or service that is of higher value than its competitors. This can only happen if there is some imperfection in the market, such as a gap in the supply and demand or lack of information, that the company can exploit. Weak or strong players in the industry or "pure and perfect competition" do not necessarily lead to a competitive advantage. Causal ambiguity may contribute to the difficulty in replicating the competitive advantage, but it is not a necessary condition for it to exist.

For a Competitive Advantage to Exist