Asked by Sunil Thapa on Sep 24, 2024
Verified
The IO Economics perspective locates the source of competitive advantage for a firm at the
A) Individual firm level
B) Industry level
C) Customer Level
D) None of the above
IO Economics
Industrial organization economics, the study of how firms' decisions about prices and quantities depend on the market conditions they face.
Competitive Advantage
The attributes or circumstances that allow an organization to produce goods or services better or more cheaply than its competitors, leading to a superior market position.
Industry Level
referring to the collective performance, trends, or characteristics of businesses within a specific sector of the economy.
- Recognize the difference between the IO (Industrial Organization) and RBV (Resource-Based View) perspectives in strategic management.
Verified Answer
OD
Olson Deliscaabout 4 hours ago
Final Answer :
B
Explanation :
IO Economics focuses on the industry level factors such as market structure, competitive environment and barriers to entry to determine a firm's competitive advantage. It also takes into consideration how a firm's behavior can affect the entire industry. Therefore, the source of competitive advantage for a firm is located at the industry level.
Learning Objectives
- Recognize the difference between the IO (Industrial Organization) and RBV (Resource-Based View) perspectives in strategic management.