Firms that can employ and establish <u>isolating mechanisms</u> are more likely to protect their competitive advantage from being copied and/or eroding away.
Isolation mechanisms:
A company is able to maintain its competitive edge for a longer period of time if it can stop a rival from copying the resource or capability that provides it that advantage. Isolation mechanisms is the name of this technique. For instance, a patent is a legitimate tool to stop imitation.
A firm's objective is to have a prolonged competitive advantage when a resource or capability gives the firm an advantage over competitors for an extended period of time. The industry will determine how long a company can preserve a competitive advantage.
If a business can maintain a competitive edge for a year in a fast-moving field like information technology or quick fashion, it may be quite happy. In an industry with less frequent changes, such as feminine hygiene, a persistent competitive advantage may remain considerably longer.
A sustainable competitive edge cannot be maintained by any company indefinitely. The competition is constantly working to improve its own competitive edge.
Learn more about Isolation mechanisms here:
brainly.com/question/15095207
#SPJ4
Answer:
Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH
Explanation:
To calcualte the overhead rate we need to distribute the expected cost over the expected cost driver, in this case, labor hours:
(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous
$1,800,000 overhead / 38,070 DLH = 47,281323877
the overhead per hour is $47.28
overhead per product:
47,281323877 x 0.81 = 38,29787234 = <u><em>38.30</em></u>
Answer:
c. makes trades less costly.
Explanation:
Payments system are means through which goods and services rendered are been paid for.
Payments system can also be defined as systems or mechanism that have been put in place in order to be able to effectively settle or pay back financial transactions for services rendered.
Example of Payment systems include:
a) Payments system based on barter: This is one of the old methods of payments for goods and services rendered by a particular party. This method involves an exchange or transfer of goods and services for another goods and services that matches the value of the goods and services been paid for. It is important to note that money is not used in a trade by barter system.
b) Payments system based on money: After currency was invented by countries of the world, payment systems evolved and money was used to settle any form of transactional activities. Payment system based on money is a means whereby goods and services been rendered by a particulars body is paid for using currency also know as money.
One of the major advantages of using payments system based on money over the payment system based on trade by barter is because payment system based on money, makes trading amongst people less costly.
