Resources and capabilities can generate higher profits
A)if competition is fierce.
B)if the competitive advantage they generate is sustained for some years.
C)only if governments allow firms to share resources.
D)only where cartels are effectively allowed.

Question

Quizplus · Accepted Answer

Resources and capabilities can generate higher profits only if the competitive advantage they generate is sustained for some years. If the advantage is not sustained, competitors can catch up and erode any temporary profits. The other options (A, C, and D) are not related to the potential for generating higher profits through resources and capabilities.

Resources and Capabilities Can Generate Higher Profits