When a resource or capability is valuable

and rare, a firm may gain a

a. sustainable competitive advantage.

b. competitive parity.

c. cost advantage.

d. temporary competitive advantage.


 Which of the following is critical for a

firm adopting a long-term cost-reduction


a. The firm must also differentiate its

product or service.

b. The strategy reduces costs by at least


c. The strategy is focused on reducing

internal production costs.

d. The methods of achieving cost reductions are difficult to imitate.