Question 1

Market share

Accepted Answer

A) does not guarantee profitability. 
B) guarantees profitability. 
C) is why Pets.com is so dominant today. 
D) none of these choices. 
A) does not guarantee profitability. 
B) guarantees profitability. 
C) is why Pets.com is so dominant today. 
D) none of these choices.

Question 2

The superstar effect is that

Accepted Answer

A) the supply of superstars is more elastic than that for average players. 
B) the labor market cannot create equilibrium wages for the best players. 
C) the demand for a few players is relatively greater than the demand for most other players. 
D) none of these choices. 
A) the supply of superstars is more elastic than that for average players. 
B) the labor market cannot create equilibrium wages for the best players. 
C) the demand for a few players is relatively greater than the demand for most other players. 
D) none of these choices.

Question 3

Economic profits are earned when

Accepted Answer

A) price equals marginal cost. 
B) price equals average variable costs. 
C) price equals average total costs. 
D) price is greater than average total costs. 
A) price equals marginal cost. 
B) price equals average variable costs. 
C) price equals average total costs. 
D) price is greater than average total costs.

Question 4

The winner's curse is not useful in understanding the performance of companies after a merger.

Accepted Answer

A) True 
 B)False

Question 5

Stock options were developed as a form of executive compensation

Accepted Answer

A) in order to enhance accounting profits. 
B) in order to align CEO performance with shareholder interests. 
C) in order to align the performance with the performance of the CEO. 
D) in order to make CEOs more socially aware. 
A) in order to enhance accounting profits. 
B) in order to align CEO performance with shareholder interests. 
C) in order to align the performance with the performance of the CEO. 
D) in order to make CEOs more socially aware.

Question 6

Stock options have been shown to not align the work of the CEO with the interests of shareholders.

Accepted Answer

A) True 
 B)False

Question 7

Diversification

Accepted Answer

A) maximizes risk. 
B) maximizes profit. 
C) minimizes risk. 
D) minimizes costs. 
A) maximizes risk. 
B) maximizes profit. 
C) minimizes risk. 
D) minimizes costs.

Question 8

To maximize market share managers need to maximize profits.

Accepted Answer

A) True 
 B)False

Question 9

When a firm acquires another,

Accepted Answer

A) the one acquired gains the most. 
B) the acquiring firm gains the most. 
C) both are better off together compared to being separate. 
D) none of these choices. 
A) the one acquired gains the most. 
B) the acquiring firm gains the most. 
C) both are better off together compared to being separate. 
D) none of these choices.

Question 10

Growth should

Accepted Answer

A) be the only strategy. 
B) be a possible strategy. 
C) never be a strategy. 
D) be a strategy only if it minimizes ATC. 
A) be the only strategy. 
B) be a possible strategy. 
C) never be a strategy. 
D) be a strategy only if it minimizes ATC.

Question 11

If marginal revenue is zero then total revenue is maximized.

Accepted Answer

A) True 
 B)False

Market share

The superstar effect is that

Economic profits are earned when

The winner's curse is not useful in understanding the performance of companies after a merger.

Stock options were developed as a form of executive compensation

Stock options have been shown to not align the work of the CEO with the interests of shareholders.

Diversification

To maximize market share managers need to maximize profits.

When a firm acquires another,

Growth should

If marginal revenue is zero then total revenue is maximized.

Economics and Management

The Power of Markets and the Wealth of Nations

Spontaneous Order, Markets, and Market Failure

Spontaneous Order and the Firm

Organization of the Firm

Market Failures and Incentive Issues Inside the Firm

When Other Firms Dont Respond

When Other Firms React

The Entrepreneur and the Market Process

Strategies With Respect to Government

What Should the Firm Do

Demand and Revenue Management

Costs

The Mechanics of Profit Maximization

Pricing

The Knowledge Economy

The Corporate Form and the Cost of Capital

Internal Markets

Measuring Economic Profit

The Firm in a National and a Global Setting

Filters

Exam 21: Strategy Myths

Market share

The superstar effect is that

Economic profits are earned when

The winner's curse is not useful in understanding the performance of companies after a merger.

Stock options were developed as a form of executive compensation

Stock options have been shown to not align the work of the CEO with the interests of shareholders.

Diversification

To maximize market share managers need to maximize profits.

When a firm acquires another,

Growth should

If marginal revenue is zero then total revenue is maximized.

Economics and Management

The Power of Markets and the Wealth of Nations

Spontaneous Order, Markets, and Market Failure

Spontaneous Order and the Firm

Organization of the Firm

Market Failures and Incentive Issues Inside the Firm

When Other Firms Dont Respond

When Other Firms React

The Entrepreneur and the Market Process

Strategies With Respect to Government

What Should the Firm Do

Demand and Revenue Management

Costs

The Mechanics of Profit Maximization

Pricing

The Knowledge Economy

The Corporate Form and the Cost of Capital

Internal Markets

Measuring Economic Profit

The Firm in a National and a Global Setting

Filters