A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu, based solely on organically raised chicken and beef, and organic seasonal produce. It has opened new locations in other cities, and these new locations are becoming highly profitable. Farm Fresh can expect that, at best, its competitive advantage will be: a. defensible. b. permanent. c. temporary. d. sustainable.

The answer to this question is C. sustainable  

Explanation:

Competitive advantages are conditions that allow a company or country to produce a good or service of equal value at a lower price or in a more desirable fashion. These conditions allow the productive entity to generate more sales or superior margins compared to its market rivals.

In the case of Farm Fresh, Its  competitive advantage is said to be sustainable, because  the  major factor required for maintaining a competitive advantage is continuous expansion which Farm Fresh has exhibited ;  it has opened new branches selling its unique products and these new locations are becoming highly profitable:

Hence the answer is C. Sustainable

C) temporary

Explanation:

Farm Fresh's competitive advantage is based on organically raised chicken and beef, which has been great for them, but it is also something temporary because other restaurants can imitate them.

In the US, more than 19 million organic chicken are raised and consumed every year, and more than 50,000 organically-certified beef cows are herded (it takes more than a year for them to be consumed). Those numbers are growing year after year, and no one has a monopoly over their sale.

In order for a competitive advantage to be permanent and sustainable, it must be extremely difficult for other competitors to copy them, but it is not the case here.

correct, but each time you dont pay the price of the penalty can increase.