Question 1

To stay one step ahead of the forces of competition,a firm can adopt one of these strategies except

Accepted Answer

A) Cost reduction 
B) Product differentiation 
C) Advertising 
D) Reduction in the intensity of competition 
A) Cost reduction 
B) Product differentiation 
C) Advertising 
D) Reduction in the intensity of competition C

Question 2

What is the 4-firm concentration ratio of an industry with 25 firms each having an equal market share?

Accepted Answer

A) 0.16. 
B) 0.24. 
C) 0.20. 
D) 0.12. 
A) 0.16. 
B) 0.24. 
C) 0.20. 
D) 0.12. A

Question 3

Low cost strategies are usually found in industries where

Accepted Answer

A) Products are not particularly differentiated 
B) Price competition tends to be fierce 
C) Both a and b 
D) None of the above 
A) Products are not particularly differentiated 
B) Price competition tends to be fierce 
C) Both a and b 
D) None of the above C

Question 4

All these increase differentiation,except

Accepted Answer

A) Product branding 
B) Reducing quality 
C) Advertising 
D) Limiting availability 
A) Product branding 
B) Reducing quality 
C) Advertising 
D) Limiting availability

Question 5

Which of these firms have a low supplier power?

Accepted Answer

A) Pharmaceutical firms 
B) Semiconductor firms 
C) Car Dealerships 
D) Software firms 
A) Pharmaceutical firms 
B) Semiconductor firms 
C) Car Dealerships 
D) Software firms

Question 6

_____________ is defined as firm's ability to earn above-average profit

Accepted Answer

A) Resource heterogeneity 
B) Superior performance 
C) Competitive advantage 
D) Sustainable advantage 
A) Resource heterogeneity 
B) Superior performance 
C) Competitive advantage 
D) Sustainable advantage

Question 7

The resource based view locates the source of advantage at the

Accepted Answer

A) Individual firm level 
B) Industry level 
C) Both a and b 
D) None of the above 
A) Individual firm level 
B) Industry level 
C) Both a and b 
D) None of the above

Question 8

Attractive industries have all the following,except

Accepted Answer

A) High supplier power 
B) Low buyer power 
C) High entry barriers 
D) Low rivalry 
A) High supplier power 
B) Low buyer power 
C) High entry barriers 
D) Low rivalry

Question 9

What are the different methods to measure industry concentration?

Accepted Answer

A) Four-firm concentration ratio. 
B) HHI index. 
C) Total output 
D) a and b only 
A) Four-firm concentration ratio. 
B) HHI index. 
C) Total output 
D) a and b only

Question 10

The concept that explains firms possessing different bundles of resources is

Accepted Answer

A) Resource heterogeneity 
B) Resource immobility 
C) Barriers to entry 
D) imitability 
A) Resource heterogeneity 
B) Resource immobility 
C) Barriers to entry 
D) imitability

Question 11

An assumption that underline Resource-based View include

Accepted Answer

A) Resource heterogeneity 
B) Resource immobility 
C) Barriers to entry 
D) Both a and b 
A) Resource heterogeneity 
B) Resource immobility 
C) Barriers to entry 
D) Both a and b

Question 12

Cost-reduction generate

Accepted Answer

A) Increases in long-run profitability 
B) Increases in long-run profitability only if the cost reduction is difficult to imitate 
C) Increases in product differentiation 
D) Reduction in competitive intensity 
A) Increases in long-run profitability 
B) Increases in long-run profitability only if the cost reduction is difficult to imitate 
C) Increases in product differentiation 
D) Reduction in competitive intensity

Question 13

The industrial organization economics perspective assumes that the industry _____________ is the most important determinant of long-run profitability.

Accepted Answer

A) Structure 
B) Conduct 
C) Performance 
D) None of the above 
A) Structure 
B) Conduct 
C) Performance 
D) None of the above

Question 14

The resource-based view indicates that firms exhibit different performances within the same industry because

Accepted Answer

A) there is less buyer power 
B) there are economies of scale present 
C) some firms have superior resources 
D) there is less competition 
A) there is less buyer power 
B) there are economies of scale present 
C) some firms have superior resources 
D) there is less competition

Question 15

Industries with high barriers to entry

Accepted Answer

A) Pushes profits to normal returns 
B) increases the likelihood of firms entering the industry 
C) help firms sustain profits 
D) increases the number of competitors 
A) Pushes profits to normal returns 
B) increases the likelihood of firms entering the industry 
C) help firms sustain profits 
D) increases the number of competitors

Question 16

Which of the following is true?

Accepted Answer

A) Industry structure determines firm conduct which in turn determines firms' performance 
B) Industry structure determines firm performance which in turn determines firms' conduct 
C) Industry conduct determines firm structure which in turn determines firms' performance 
D) Industry performance determines firm conduct which in turn determines firms' structure 
A) Industry structure determines firm conduct which in turn determines firms' performance 
B) Industry structure determines firm performance which in turn determines firms' conduct 
C) Industry conduct determines firm structure which in turn determines firms' performance 
D) Industry performance determines firm conduct which in turn determines firms' structure

Question 17

One of the limitation of Five Forces is that

Accepted Answer

A) These tools reduce producer surplus 
B) For one firm to increase profit,it takes it from other participants in the industry 
C) Does not provide a firm with sustainable competitive advantage 
D) Both b and c 
A) These tools reduce producer surplus 
B) For one firm to increase profit,it takes it from other participants in the industry 
C) Does not provide a firm with sustainable competitive advantage 
D) Both b and c

Question 18

For a firm to reduce competitive intensity,it should

Accepted Answer

A) Enact barrier to entry 
B) Lobby to the government 
C) Acquire patents 
D) All the above 
A) Enact barrier to entry 
B) Lobby to the government 
C) Acquire patents 
D) All the above

Question 19

An industry with a high four-firm concentration ratio implies

Accepted Answer

A) firms have high supplier power 
B) firms have low supplier power 
C) buyers have a high supplier power 
D) buyers have a low supplier power 
A) firms have high supplier power 
B) firms have low supplier power 
C) buyers have a high supplier power 
D) buyers have a low supplier power

Question 20

All of the following are example of entry barriers,except

Accepted Answer

A) Government protection through patents or licensing requirements 
B) Strong brands 
C) Low capital requirements for entry 
D) Lower costs driven by economies of scale 
A) Government protection through patents or licensing requirements 
B) Strong brands 
C) Low capital requirements for entry 
D) Lower costs driven by economies of scale

Exam 10: Strategy: the Quest to Keep Profit From Eroding

To stay one step ahead of the forces of competition,a firm can adopt one of these strategies except

What is the 4-firm concentration ratio of an industry with 25 firms each having an equal market share?

Low cost strategies are usually found in industries where

All these increase differentiation,except

Which of these firms have a low supplier power?

_____________ is defined as firm's ability to earn above-average profit

The resource based view locates the source of advantage at the

Attractive industries have all the following,except

What are the different methods to measure industry concentration?

The concept that explains firms possessing different bundles of resources is

An assumption that underline Resource-based View include

Cost-reduction generate

The industrial organization economics perspective assumes that the industry _____________ is the most important determinant of long-run profitability.

The resource-based view indicates that firms exhibit different performances within the same industry because

Industries with high barriers to entry

Which of the following is true?

One of the limitation of Five Forces is that

For a firm to reduce competitive intensity,it should

An industry with a high four-firm concentration ratio implies

All of the following are example of entry barriers,except

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Muchdecisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long-Run Equilibrium

Foreign Exchange, trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination Indirect Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters