All else equal, when comparing a key value chain activity, Witty Walter's learning curve is steeper than that of their rival Clever Clarissa. Assuming they are direct rivals pursuing the same opportunities, what does this imply?

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Witty Walter is at an advantage when compared to Clever Clarissa.

Witty Walter is experiencing negative returns to scale.

Witty Walter is at a disadvantage when compared to Clever Clarissa.

Witty Walter and Clever Clarissa have achieved competitive parity.