1. Firms maintain their completive edge by
a. Providing a good at lower costs than their rivals
b. Providing a superior product at the same cost
... [Show More] as your rival
c. Being innovative
d. All the above
ANSWER: d
TOPICS: Section 1: Strategy is Simple
2. Which of the following is the foundation for success for a company facing competition
a. Create an advantage over the competition
b. Protect the advantage created over the competition
c. Create and protect advantages over the competition
d. None of the above
ANSWER: c
TOPICS: Section 1: Strategy is Simple
3. If a customer values good A at $15, and it costs the firm $10 to produce, current profit per unit is
a. $10
b. $8
c. $5
d. $1
ANSWER: c
TOPICS: Section 1: Strategy is Simple
4. Strategy is
a. The art of matching the resources and capabilities of a firm to the opportunities and risks in its environment
b. Developing a resource for the company that is both rare and valuable to create competitive advantage
c. Making sure that the resource developed is non-fungible to create a sustainable advantage
d. All of the above
ANSWER: d
TOPICS: Section 1: Strategy is Simple
5. Intense market competition is ________ for consumers, since it_______.
a. Bad; erodes producer surplus
b. Bad, increases variety in the market
c. Good, increases the price level in the market
d. Good; decreases the price level in the market
ANSWER: d
TOPICS: Section 2: Sources of Economic Profit
6. Intense market competition is ________ for producers, since it_______.
a. Bad; erode consumer surplus
b. Bad, erode producer profits
c. Good, increase the price level in the market
d. Good; decrease the price level in the market
ANSWER: b
TOPICS: Section 2: Sources of Economic Profit
7. It is more profitable for a firm to be_______ than ________
a. In perfect competition; monopolists
b. A monopolists; in perfect competition
c. Not in business; in business
d. All of the above
ANSWER: b
TOPICS: Section 2: Sources of Economic Profit
8. The IO Economics perspective locates the source of competitive advantage for a firm at the
a. Individual firm level
b. Industry level
c. Customer Level
d. None of the above
ANSWER: b
TOPICS: Section 2: Sources of Economic Profit
9. The RBV perspective locates the source of competitive advantage for a firm at the
a. Individual firm level
b. Industry level
c. Customer Level
d. None of the above
ANSWER: a
TOPICS: Section 2: Sources of Economic Profit [Show Less]