Test Bank for Modern Competitive Strategy 4th Edition

Test Bank for Modern Competitive Strategy 4th Edition Competitive Advantage Multiple Choice Questions 1. What determines the value of a product? A. its technology B. its market price C. the price the customer would be willing to pay for it in the absence of competing products and given budget constraints D. the market prices of competing products 2. Which of the following are isolating mechanisms? A. causal ambiguity B. property rights C. search costs D. all of the above 3. Which of the following are value drivers: 1. the product's technology, 2. the firm's risk assumption, 3. economies of scale, 4. network externalities? A. 1 and 2 B. 1, 2 and 3 C. 1, 2 and 4 D. all 4. Which of the following are cost drivers: 1. the learning curve, 2. complementary products, 3. breadth of product line, 4. economies of scope? A. 1 and 2 B. 3 and 4 C. 1 and 4 D. 1, 3 and 4 2-3 5. A firm creates a network externality when: A. customers using the product speak to each other B. the benefit customers receive from using the firm's product increases as new customers are added C. the products are produced using network technologies D. all its products are connected Chapter 02 Competitive Advantage Answer Key Multiple Choice Questions 1. (p. 24) What determines the value of a product? A. its technology B. its market price C. the price the customer would be willing to pay for it in the absence of competing products and given budget constraints D. the market prices of competing products Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium 2. (p. 47) Which of the following are isolating mechanisms? A. causal ambiguity B. property rights C. search costs D. all of the above Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy 3. (p. 35- 42) Which of the following are value drivers: 1. the product's technology, 2. the firm's risk assumption, 3. economies of scale, 4. network externalities? A. 1 and 2 B. 1, 2 and 3 C. 1, 2 and 4 D. all Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy 4. (p. 43) Which of the following are cost drivers: 1. the learning curve, 2. complementary products, 3. breadth of product line, 4. economies of scope? A. 1 and 2 B. 3 and 4 C. 1 and 4 D. 1, 3 and 4 Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium 2-8 5. (p. 40) A firm creates a network externality when: A. customers using the product speak to each other B. the benefit customers receive from using the firm's product increases as new customers are added C. the products are produced using network technologies D. all its products are connected Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium