Chapter 7—When Other Firms Don’t Respond Key
1. A graphical representation of the choices between two allocations of resources is called
2. Any point inside the production possibilities frontier is called
3. Any point on the production possibilities frontier is called
4. Any point outside the production possibilities frontier is called
5. The best practices frontier is similar in construction and meaning to the
6. What is not included in Porter’s five forces representation?
7. Michael Potter argued that ____ led to firms earning economic profit over extended periods of time.
8. What type of market exhibits product differentiation?
9. What type of market has few sellers?
10. In what market type does an individual firm face a perfectly elastic demand curve?
11. A firm in which market has the most market power?
12. In which market type does one find the most advertising
13. In which market type does the firm face the most inelastic demand curve?
14. Which model tends to focus on the internal assets of a company?
15. The thing or things that a company does better than its competitors is called its
16. Which of the following cannot be a factor that gives it a competitive advantage?
17. VRIN or VRIO is an example of a
18. A brand name can affect a firm’s
19. Brand names are
20. Warranties and guarantees can serve as a(n)
21. The size of a firm relative to the size of the market can be referred to as
22. A price that discourages entry is called a
23. Limit pricing is also referred to as
24. A unique resource can serve as
25. In terms of the best practices frontier, a long term strategy
26. A production possibilities frontier cannot be used to show choice.
27. A best practices frontier can be used to describe short and long term strategies.
28. Competitive advantage is not synonymous with comparative advantage.
29. The bargaining power of customers is not one of Porter’s five forces.
30. Porter’s five forces model is trying to identify things that leads to a company’s success.
31. The threat of substitutes is held constant in Porter’s five forces model.
32. Firms in perfect competition sell differentiated products.
33. Monopolies do not last in the long-run.
34. There are many firms in an oligopolistic market.
35. A brand name can be a source of market power.
36. Sunk costs can be controlled after they are paid.
37. A limit price is never a predatory price.
38. Pricing policy can serve as a barrier to entry.