AGEC 440 Final Exam Questions With
100% Detailed Verified Solutions and
RATIONALE GRADE A+ Latest
Versions 2025
Human Capital - Correct answer.Management and employee knowledge, training, experiences etc.
Organizational Capital - Correct answer.Culture, reputation (trust)
Assumptions of RBV - Correct answer.1. Resource heterogeneous
2. Resource immobility
VIRO - Correct answer.Value, Rarity, Imitability (cost of imitation), Organization
Does a firm's resources and capabilities enable the firm to respond to environmental threats or
opportunities? - Correct answer.Value
How many competing firms already possess a particular valuable resource? - Correct answer.Rarity
Do firms without a resource face a cost disadvantage in obtaining it compared to firms that already
possess it? - Correct answer.Inimitability (cost of imitation)
Is a firm organized to exploit the full competitive potential of its resources? - Correct
answer.Organization
Static analysis
Resources taken as given
Competitive value is not solely attributed to the resources of a firm - Correct answer.Limitations of
RBV
Below normal economic performance - Correct answer.Not Valuable, Rare, or costly to imitate
,Normal economic performance - Correct answer.Valuable but not Rare or costly to imitate
Above normal temporary economic performance - Correct answer.Valuable and Rare but not costly
to imitate
Above normal sustained economic performance - Correct answer.Valuable, Rare, and costly to
imitate
Online education - Correct answer.-threat of rivalry
-high competition
-low growth
The $200,000 a year Mine Worker - Correct answer.- Rarity
- demand > supply
Engineering a Safer Burger - Correct answer.-Valuable
-Rare
-costly to imitate
-boss is the owner so its easy to try new things
Tee Pee - Correct answer.-Valuable
-Rare
-costly to imitate
-has a boss so its harder to try new things
3 Factors Affecting Threat of substitute - Correct answer.Relative price of substitutes
Switching costs
Buyer propensity to substitute - Consumer loyalty
1. Supplier concentration is high
2. Threat of vertical integration
3. Suppliers' product is important to quality
, 4. Suppliers' product is differentiated
5. Industry is not a major customer for suppliers - Correct answer.5 Factors Affecting Threat of
Supplier
threat of entry is driven by above normal return-probably don't have high returns, also grandma can
make jam so cost is low so threat of entry is not a true threat
threat of supplier power-not big threat bc so many fruit producers=low concentration, highly
competitive so threat of supplier is not true threat
threat of substitutes-price impacts subs. the low sugar jams are more expensive so this is not
necessarily a threat since the price is high, its about price of subs not number
threat of rivalry-rivalry=indentical products. advertising decreased by 76% which means products are
very similar bc you only advertise if your product is different, slow industry growth is something
that means high rivalry. both of these=high rivalry so this is key threat
threat of buyer power-producers are fighting for shelf space bc retail industry is very concentrated
which makes buyer power a key threat - Correct answer.5 forces analysis of sweet jam industry-
identify key threats
• Food retail and manufacturing industries are competitive and low-margin industries
- Yet, Nestle, Walmart, and Albertsons perform better (worse) than the industry average, why?
• Airline industry is highly competitive with total losses of $10 billion in 1990s
- Southwest airlines profits continued to grow? southwest accused of falsifying reports article
-SCP is an analysis of industry, not the firm so you can't predict the performance of southwest -
Correct answer.Motivations for RBV
motivation of 5 forces - Correct answer.know your enemies and yourself so you can take them out
-opposite of anti trust
Industrial organization economics was a response to which of the following market conditions?
a. markets are increasingly competitive
b. markets are increasingly concentrated
c. markets are increasingly dynamic
d. markets are increasingly differentiated
100% Detailed Verified Solutions and
RATIONALE GRADE A+ Latest
Versions 2025
Human Capital - Correct answer.Management and employee knowledge, training, experiences etc.
Organizational Capital - Correct answer.Culture, reputation (trust)
Assumptions of RBV - Correct answer.1. Resource heterogeneous
2. Resource immobility
VIRO - Correct answer.Value, Rarity, Imitability (cost of imitation), Organization
Does a firm's resources and capabilities enable the firm to respond to environmental threats or
opportunities? - Correct answer.Value
How many competing firms already possess a particular valuable resource? - Correct answer.Rarity
Do firms without a resource face a cost disadvantage in obtaining it compared to firms that already
possess it? - Correct answer.Inimitability (cost of imitation)
Is a firm organized to exploit the full competitive potential of its resources? - Correct
answer.Organization
Static analysis
Resources taken as given
Competitive value is not solely attributed to the resources of a firm - Correct answer.Limitations of
RBV
Below normal economic performance - Correct answer.Not Valuable, Rare, or costly to imitate
,Normal economic performance - Correct answer.Valuable but not Rare or costly to imitate
Above normal temporary economic performance - Correct answer.Valuable and Rare but not costly
to imitate
Above normal sustained economic performance - Correct answer.Valuable, Rare, and costly to
imitate
Online education - Correct answer.-threat of rivalry
-high competition
-low growth
The $200,000 a year Mine Worker - Correct answer.- Rarity
- demand > supply
Engineering a Safer Burger - Correct answer.-Valuable
-Rare
-costly to imitate
-boss is the owner so its easy to try new things
Tee Pee - Correct answer.-Valuable
-Rare
-costly to imitate
-has a boss so its harder to try new things
3 Factors Affecting Threat of substitute - Correct answer.Relative price of substitutes
Switching costs
Buyer propensity to substitute - Consumer loyalty
1. Supplier concentration is high
2. Threat of vertical integration
3. Suppliers' product is important to quality
, 4. Suppliers' product is differentiated
5. Industry is not a major customer for suppliers - Correct answer.5 Factors Affecting Threat of
Supplier
threat of entry is driven by above normal return-probably don't have high returns, also grandma can
make jam so cost is low so threat of entry is not a true threat
threat of supplier power-not big threat bc so many fruit producers=low concentration, highly
competitive so threat of supplier is not true threat
threat of substitutes-price impacts subs. the low sugar jams are more expensive so this is not
necessarily a threat since the price is high, its about price of subs not number
threat of rivalry-rivalry=indentical products. advertising decreased by 76% which means products are
very similar bc you only advertise if your product is different, slow industry growth is something
that means high rivalry. both of these=high rivalry so this is key threat
threat of buyer power-producers are fighting for shelf space bc retail industry is very concentrated
which makes buyer power a key threat - Correct answer.5 forces analysis of sweet jam industry-
identify key threats
• Food retail and manufacturing industries are competitive and low-margin industries
- Yet, Nestle, Walmart, and Albertsons perform better (worse) than the industry average, why?
• Airline industry is highly competitive with total losses of $10 billion in 1990s
- Southwest airlines profits continued to grow? southwest accused of falsifying reports article
-SCP is an analysis of industry, not the firm so you can't predict the performance of southwest -
Correct answer.Motivations for RBV
motivation of 5 forces - Correct answer.know your enemies and yourself so you can take them out
-opposite of anti trust
Industrial organization economics was a response to which of the following market conditions?
a. markets are increasingly competitive
b. markets are increasingly concentrated
c. markets are increasingly dynamic
d. markets are increasingly differentiated
