Ask Question
BusinessBusiness
19 August, 05:16

How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?

+5
Answers (1)
  1. 19 August, 06:18
    0
    In perfect competition, all firms have access to the same capabilities, whereas in the resource-based model, resource differences exist between firms in the same industry.

    Explanation:

    This means that the law of supply and demand wouldn't be applicable in a perfect competition.

    In other types of economic competition, Resources will be allocated to the group that are able to create the best product or services that are loved by the marker or to group who are able to market their products or services in a more efficient way.

    In a perfect competition, noone have the better products or services. All of them have the same quality. So the allocation of resources will occurs randomly among the producers.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: Net initial investment outlay $ 50,000 After-tax cash inflow from disposal of the asset after 5 years $ 10,000 Present value of an annuity of $1 at 12%
Answers (1)
Alpha Computers reports net income of $44 million. Included in that number are depreciation expense of $7 million and a loss on the sale of land of $1 million.
Answers (1)
The population p, in millions, of a certain country can be calculated by p=0.83t54, where t is the time in years, and t = 0 represents the year 2015. find the expected population of this country in 2096.
Answers (1)
The government would be running a budget surplus if a. tax revenues were less than government spending. b. government spending were lower than consumer spending. c. it imported less from abroad than it exported. d.
Answers (2)
In 1950, residents in Liberia were wealthier than those in Taiwan. Today, per capita gross domestic product (GDP) in Taiwan is more than 20 times that of Liberia.
Answers (1)
New Questions in Business
A relatively low saving rate affects productivity growth by: a. decreasing consumption spending and increasing investment in human capital. b. reducing the tax base and preventing the government from providing public goods. c.
Answers (2)
According to the terminology associated with changes in currency values, which of the following choices is the case when a currency's value relative to other currencies is changed by a government? A) depreciation and revaluation.
Answers (1)
Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased paintings and approached the manager to buy the piece.
Answers (2)
To cut costs, a broker-dealer hires some college interns. The firm allows the interns to make calls to potential clients to market investment opportunities in stocks, bonds, and mutual funds. This action would be:
Answers (1)
Galla Inc. needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units.
Answers (1)
Home » Business » How are the critical assumptions of the resource-based model of a firm fundamentally different from the way in which a firm is viewed in the perfectly competitive industry structure?
Sign Up Forgot Password?