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Economics

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1.Apply the VRIO Framework in the following settings. Will the actions described be a source of competitive disadvantage, parity, temporary advantage, or sustained competitive advantage? Explain your answers.

1. The New York Yankees sign All-Star pitcher Randy Johnson to a long-term contract.

Value:

Rare:

Imitability:

Organized:

2.If the demand for a product is said to be relatively inelastic, the "absolute" value of the elasticity coefficient will be?

3.You sell 500 tacos each year at $10 per burrito. It cost you $8 to produce a burrito. Would you rather (a) double your price but lose half of the amount you sell, or (B) keep the price the same and double the amount you sell? What challenges might you face with either approach?