In the context of economics, resources that competitors can easily imitate typically generate which of the following?

• A. Long-term monopoly power
• B. Little or no sustained competitive advantage
• C. High barriers to entry
• D. Significant economic profits in the long run

Answer: (B)

Verified step by step guidance

1. Understand the concept of competitive advantage in economics, which refers to a firm's ability to maintain profits and market position over time relative to competitors.
2. Recognize that resources which competitors can easily imitate do not provide a unique or protected advantage, meaning other firms can replicate the same benefits.
3. Recall that long-term monopoly power and significant economic profits usually arise from resources or capabilities that are difficult to imitate or substitute, creating barriers to entry.
4. Since easily imitated resources do not prevent competitors from entering the market or copying strategies, they fail to create high barriers to entry or sustained economic profits.
5. Conclude that such resources typically generate little or no sustained competitive advantage because any temporary gains are eroded as competitors imitate and compete away profits.