Asked by Erika Johnson on Apr 28, 2024
Verified
The concept that explains the firm's ability to produce output with differing bundles of resources is called
A) Resource heterogeneity
B) Resource immobility
C) Barriers to entry
D) Imitability
Resource Heterogeneity
The principle that resources needed for production, such as labor, capital, and land, differ in their quality and composition across firms or economies.
- Understand the fundamental principles of the Resource-Based View (RBV), encompassing resource immobility and heterogeneity.
Verified Answer
KS
Kevin StudioApr 30, 2024
Final Answer :
A
Explanation :
Resource heterogeneity refers to the idea that firms have access to different combinations of resources, allowing them to produce output in varying ways. This provides firms with a competitive advantage over others that do not have access to the same resources or combinations of resources. Resource immobility, barriers to entry, and imitability are also important concepts, but they do not directly relate to a firm's ability to produce output with differing bundles of resources.
Learning Objectives
- Understand the fundamental principles of the Resource-Based View (RBV), encompassing resource immobility and heterogeneity.