What term best describes assets that are more valuable when used together than when
separated?
a) Isolating
b) Value-creating
c) Imperfectly mobile
d) Scarce
e) Cospecialized
What term describes the situation when a firm earns a higher rate of economic profit
than the average rate of economic profit of other firms competing within the same
market?
a) Industry effect
b) Competitive advantage
c) Business unit effect
d) Competitive position
e) Market profitability economics
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 Dog
b) Lean and Hungry Look
c) Mad Dog
d) Puppy-Dog Ploy
e) Fat-Cat Effect
The following figure plots Short Run Average Cost functions for small, medium, and
large plants. Based on the figure and plots provided, for which quantity level is a
medium plant the best choice?
a) Q1
b) Q2
c) Q3
d) Q4
e) Q5
What force does Manne indicate constrains the actions of managers so that they stay
focused on the goals of owners?
a) Market for corporate control
b) SEC
c) Corporate board
d) Corporate governance
e) CEO
Which of the following is an example of informal regulations with respect to a firm’s
social context?
a) Contracting
b) Employment practices
c) Pricing
d) Entry-deterring behaviors
e) Cultural norms
When is a signal informative?
a) When it is lightly advertised by the firm
b) When it is more profitable for the high quality firm to offer it
c) When there are many firms advertising substitute products
d) When it is offered by the low quality firm
e) When the first firm that signals is the low quality firm
What kind of economies come from reductions in cost due to adoption of technology
that has high fixed costs, but lower variable costs?
a) Short-run economies of scale
b) Short-run economies of scope
c) Long-run economies of scale
d) Long-run economies of scope
e) Partially automated economies
Which of the following is not generally a potential benefit of diversification?
a) Control systems rewarding/penalizing division managers based on business unit
objective
b) Economies of scale and scope
c) Economizing on transaction costs
d) Diversifying shareholder portfolios
e) Identifying undervalued firms
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
What type of curve can be used to describe the set of price-quality combinations that
yields the same consumer surplus to an individual?
a) Frontier curve
b) Learning curve
c) Level curve
d) Implicit curve
e) Indifference curve
What term describes when a firm has minimized the extent to which the exchange of
goods and services in the vertical chain has been organized to minimize coordination,
agency and transaction costs?
a) Agency efficiency
b) Technical efficiency
c) Lean compliant
d) Economizing
e) Six sigma compliant