Archives

Which of the following is not an impediment to imitation? a) Legal restrictions b) Superior access to inputs or customers c) Scale diseconomies d) Market size economies e) Intangible barriers: casual ambiguity, dependence on historical circumstances, and social complexity Which […]

Which of the following best describes marginal cost? a) The per-unit-of-output cost for a product b) The incremental cost of producing one more unit of output. c) A cost invariant to the firm’s output d) The sum of all costs […]

Which of the following best describes a focus strategy? a) When a firm either offer a narrow set of varieties, serve a narrow set of customers, or do both b) When a firm sells products manufactured with raw materials from […]

Which of the following statements is true about a tough commitment? a) It is good for competitors b) It is bad for competitors c) In Cournot competition, elimination of production facilities is an example of a tough commitment d) In […]

Which of the following benefits of diversification explains the idea that combining unrelated businesses can allow firms to finance projects through cross-subsidization when they previously were unable to finance the same projects externally? a) Use of internal capital markets b) […]

Which of the following commitment strategies involves soft commitment postures, strategic complements for the stage 2 tactical variables, a refrain commitment action and an acceptance of the status quo out of fear thus waiting to follow the leader? a) Top […]

When firms encounter problems that differ according to their difficulty and frequency it is known as: a) A problem set b) Knowledge hierarchy c) Agency collection d) Organizational collection e) None of the above Which of the following terms involves […]

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate? a) Leveraging resourcesb) Strategic intent c) Strategic stretch d) Hypercompetition e) Global dominance […]

What is the gaizhi process? a) Valuing assets according to their earnings b) A state-owned enterprise and private enterprise entering a joint venture c) An increase of profitability prior to sale d) Acquisition of large firms by private organizations e) […]

Which of the following terms describes the situation created by a large dominant firm where smaller firms can find buyers as long as they sustain a lower price? a) Price umbrella b) Price leading c) Predatory pricing d) Premium pricing […]

Cooperative pricing is helped by which of the following situations? a) Price following b) Advance announcement of price changes c) Price leadership d) Most favored customer clauses e) Uniform delivered prices Select the letter corresponding to the best answer. For […]

Which of the following terms best describes how a firm uses a division of labor to organize tasks, specify how its staff performs tasks, and facilitate internal and external information flows? a) Organizational structure b) Formal and informal firm arrangements […]

If a firm is producing as efficiently as it knows how, then how will the total cost function slope? a) Upward b) Downward c) No Slope d) Downward until an output threshold value, then upward e) Upward until an output […]

The movement of inputs and outputs through a production process is known as which of the following? a) Coordination b) Input-output c) Integration d) Throughput e) Systemology What institution within a firm must fail on some level for managers to […]

What economics game theory concept is demonstrated by the Erie Canal public works project? a) Nash equilibrium b) Lock-in c) Backwards induction d) Fair division e) Prisoner’s dilemma What term best refers to a wage payment made to an agent […]