MGMT 4900 - Quiz 1 Questions with Correct Answers Latest Update 2025-2026
oligopolistic - Answers Rhino Pictures Inc. is a large production company that controls a major
portion of the movie industry's market share along with two other firms. Despite its
competitiveness with the two other firms, it is influenced by their actions and often has to
consider their strategic actions before acting on its own. In this scenario, Rhino Pictures Inc. is
most likely functioning in a(n) _____ industry.
- oligopolistic
- monopolistic
- perfectly competitive
- monopolistically competitive
Narrow the scope of competition and focus on unique features such as the use of organic
materials - Answers Thomas is the owner of a landscaping company that caters to a very
wealthy clientele. His company has struggled to differentiate itself from the other high-end
landscapers in the area, but because he has hired several expensive but highly-qualified team
members, Thomas is unable to shift to a cost leadership strategy. Which strategy is most likely
to achieve a competitive advantage?
- Offer similar services as competitors but raise prices to increase profits
- Lower prices but continue employing high-paid expert gardeners
- Narrow the scope of competition and focus on unique features such as the use of organic
materials
- Maintain prices but replace all the expert employees with less-skilled workers to control costs
-better expectations of future resource value - Answers Keen Beans, a leading coffee roaster,
anticipated that the prices of coffee beans from Costa Rica, where its main suppliers were
located, would double in less than three years. This would significantly affect Keen Beans' profit
margins. Thus, Keen Beans decided to develop a new partnership with a supplier in Indonesia.
As predicted, the price of Costa Rican coffee beans increased twofold. Because the price of
Indonesian coffee beans was much lower, Keen Beans was able to maintain its profit margins in
turbulent times. Which of the following isolating mechanisms does this scenario best illustrate?
-intellectual property protection
,-causal ambiguity
-time compression diseconomies
-better expectations of future resource value
Zhang Corp. was able to hold its market share of 68 percent in the social networking industry
for more than three years. - Answers Which of the following scenarios illustrates a firm that has
a sustainable competitive advantage?
- Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial
revenue average of $320,000.
- CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales
of 5,000 units, though the industry average is 10,000 units.
- Zhang Corp. was able to hold its market share of 68 percent in the social networking industry
for more than three years.
- Peak Inc. was able to outperform its competitors with its new production system, in terms of
revenue, for a brief period of four months.
AccuroDisk creates a greater economic value than TD Storage - Answers AccuroDisk Inc.
manufactures external hard disks for $32 per unit, and the maximum price customers are willing
to pay is $47 per unit. TD Storage Inc. is a competitor of AccuroDisk Inc. that produces external
hard disks for $37 per unit, and customers are willing to pay a maximum price of $50 per unit.
What does this imply?
-AccuroDisk and TD Storage share differentiation parity
-TD Storage has a competitive advantage over AccuroDisk in terms of perceived value
-AccuroDisk creates a greater economic value than TD Storage
-TD Storage is a cost-leader when compared to AccuroDisk
the actions of managers within the firm - Answers Which of the following forces tends to be
more important in determining a firm's performance?
-the underlying economic structure
-the entry barriers in the industry
, -the actions of managers within the firm
-the number and size of other firms in the industry
Suppliers can credibly threaten to backward integrate into the industry. - Answers In which of
the following situations is the power of suppliers high in an industry?
-Suppliers offer products that are undifferentiated.
-Suppliers can credibly threaten to backward integrate into the industry.
-Suppliers depend heavily on the industry for their revenues.
-Suppliers' industry is more concentrated than the industry it sells
focused differentiation strategy. - Answers Organic Eats is a restaurant that caters to the needs
of a small percentage of highly health-conscious consumers. It has an all-organic, vegan menu.
Since there are very few restaurants that offer the same unique services, customers are willing
to pay a premium price for its products and services. In this scenario, Organic Eats is following
a
-product diversification strategy.
-liquidation strategy.
-mass market strategy.
-focused differentiation strategy.
Positive growth rate. - Answers Which of the following is NOT a major consideration of barriers
to entry?
-Capital requirements.
-Brand identity.
-Positive growth rate.
-Economies of scale.
Every time the cumulative output is doubled, the cost per unit will decline by 20 percent. -
Answers What does it mean for a firm to have an 80 percent learning curve?
oligopolistic - Answers Rhino Pictures Inc. is a large production company that controls a major
portion of the movie industry's market share along with two other firms. Despite its
competitiveness with the two other firms, it is influenced by their actions and often has to
consider their strategic actions before acting on its own. In this scenario, Rhino Pictures Inc. is
most likely functioning in a(n) _____ industry.
- oligopolistic
- monopolistic
- perfectly competitive
- monopolistically competitive
Narrow the scope of competition and focus on unique features such as the use of organic
materials - Answers Thomas is the owner of a landscaping company that caters to a very
wealthy clientele. His company has struggled to differentiate itself from the other high-end
landscapers in the area, but because he has hired several expensive but highly-qualified team
members, Thomas is unable to shift to a cost leadership strategy. Which strategy is most likely
to achieve a competitive advantage?
- Offer similar services as competitors but raise prices to increase profits
- Lower prices but continue employing high-paid expert gardeners
- Narrow the scope of competition and focus on unique features such as the use of organic
materials
- Maintain prices but replace all the expert employees with less-skilled workers to control costs
-better expectations of future resource value - Answers Keen Beans, a leading coffee roaster,
anticipated that the prices of coffee beans from Costa Rica, where its main suppliers were
located, would double in less than three years. This would significantly affect Keen Beans' profit
margins. Thus, Keen Beans decided to develop a new partnership with a supplier in Indonesia.
As predicted, the price of Costa Rican coffee beans increased twofold. Because the price of
Indonesian coffee beans was much lower, Keen Beans was able to maintain its profit margins in
turbulent times. Which of the following isolating mechanisms does this scenario best illustrate?
-intellectual property protection
,-causal ambiguity
-time compression diseconomies
-better expectations of future resource value
Zhang Corp. was able to hold its market share of 68 percent in the social networking industry
for more than three years. - Answers Which of the following scenarios illustrates a firm that has
a sustainable competitive advantage?
- Jamison Inc. generated revenue of $300,000 this financial year, which is close to the industrial
revenue average of $320,000.
- CR Inc. almost doubled its sales to 9,000 units this year compared to its previous year's sales
of 5,000 units, though the industry average is 10,000 units.
- Zhang Corp. was able to hold its market share of 68 percent in the social networking industry
for more than three years.
- Peak Inc. was able to outperform its competitors with its new production system, in terms of
revenue, for a brief period of four months.
AccuroDisk creates a greater economic value than TD Storage - Answers AccuroDisk Inc.
manufactures external hard disks for $32 per unit, and the maximum price customers are willing
to pay is $47 per unit. TD Storage Inc. is a competitor of AccuroDisk Inc. that produces external
hard disks for $37 per unit, and customers are willing to pay a maximum price of $50 per unit.
What does this imply?
-AccuroDisk and TD Storage share differentiation parity
-TD Storage has a competitive advantage over AccuroDisk in terms of perceived value
-AccuroDisk creates a greater economic value than TD Storage
-TD Storage is a cost-leader when compared to AccuroDisk
the actions of managers within the firm - Answers Which of the following forces tends to be
more important in determining a firm's performance?
-the underlying economic structure
-the entry barriers in the industry
, -the actions of managers within the firm
-the number and size of other firms in the industry
Suppliers can credibly threaten to backward integrate into the industry. - Answers In which of
the following situations is the power of suppliers high in an industry?
-Suppliers offer products that are undifferentiated.
-Suppliers can credibly threaten to backward integrate into the industry.
-Suppliers depend heavily on the industry for their revenues.
-Suppliers' industry is more concentrated than the industry it sells
focused differentiation strategy. - Answers Organic Eats is a restaurant that caters to the needs
of a small percentage of highly health-conscious consumers. It has an all-organic, vegan menu.
Since there are very few restaurants that offer the same unique services, customers are willing
to pay a premium price for its products and services. In this scenario, Organic Eats is following
a
-product diversification strategy.
-liquidation strategy.
-mass market strategy.
-focused differentiation strategy.
Positive growth rate. - Answers Which of the following is NOT a major consideration of barriers
to entry?
-Capital requirements.
-Brand identity.
-Positive growth rate.
-Economies of scale.
Every time the cumulative output is doubled, the cost per unit will decline by 20 percent. -
Answers What does it mean for a firm to have an 80 percent learning curve?
