MGMT 449 7-11 || All Answers are Valid.
Which of the following pieces of advice would you give to a firm that wants to exploit network
effects? correct answers Create incentives for other firms to develop complementary products.
Computer software products have high marginal costs and low fixed costs. correct answers False
Which of the following strategies should a company NOT adopt if it wants to win a format war?
correct answers Charging extremely high license fee for the technology
Technological paradigm shifts occur when new technologies revolutionize the structure of the
industry, dramatically alter the nature of competition, and require companies to adopt new
strategies to survive. correct answers True
The various strategies that companies should adopt to win format wars revolve around correct
answers making network effects work in their favor and against their competitors.
There are no significant benefits to owning a technical standard in an industry correct answers :
False
Switching costs, in the context of technology industries, refer to the costs that correct answers
customers need to bear to abandon an established standard and adopt a new standard.
Which of the following statements is true about establishing technical standards? correct answers
Technical standards are often set by cooperation among businesses, without government help.
Which of the following statements is true about new entrants in the context of a technological
paradigm shift? correct answers New entrants do not need to worry about their established
customer base.
, Which of the following statements is true of technology in industries? correct answers
Technology is revolutionizing aspects of the product or production system even in industries not
typically considered high-tech.
The outcome of format wars to control the source and customer value of differentiation can
ultimately affect the profitability and survival of a company correct answers True
Consumers will bear switching costs if: correct answers he benefits of adopting the new
technology outweigh the costs of switching.
Technical standards do NOT play any role in product differentiation correct answers False
With reference to high-technology industries, which of the following is an example of a technical
standard? correct answers layout of keys on a keyboard
An advantage of being a first mover is that: correct answers there is an opportunity to increase
sales volume ahead of rivals.
Which of the following statements is true about technological paradigm shifts? correct answers
They have the potential to threaten the survival of established industries.
Consider a cost curve with production volume on the horizontal axis and marginal costs on the
vertical axis. What shape would the marginal cost curve most resemble in a high-tech industry?
correct answers Straight and Flat
Companies promoting alternative standards can be locked out of the market when consumers are
unwilling to bear the switching costs required to abandon the established standard and adopt the
new standard. correct answers True
Which of the following is NOT a way that standards can emerge in an industry? correct answers
Emerging rules and regulations about resource use and worker safety
Which of the following pieces of advice would you give to a firm that wants to exploit network
effects? correct answers Create incentives for other firms to develop complementary products.
Computer software products have high marginal costs and low fixed costs. correct answers False
Which of the following strategies should a company NOT adopt if it wants to win a format war?
correct answers Charging extremely high license fee for the technology
Technological paradigm shifts occur when new technologies revolutionize the structure of the
industry, dramatically alter the nature of competition, and require companies to adopt new
strategies to survive. correct answers True
The various strategies that companies should adopt to win format wars revolve around correct
answers making network effects work in their favor and against their competitors.
There are no significant benefits to owning a technical standard in an industry correct answers :
False
Switching costs, in the context of technology industries, refer to the costs that correct answers
customers need to bear to abandon an established standard and adopt a new standard.
Which of the following statements is true about establishing technical standards? correct answers
Technical standards are often set by cooperation among businesses, without government help.
Which of the following statements is true about new entrants in the context of a technological
paradigm shift? correct answers New entrants do not need to worry about their established
customer base.
, Which of the following statements is true of technology in industries? correct answers
Technology is revolutionizing aspects of the product or production system even in industries not
typically considered high-tech.
The outcome of format wars to control the source and customer value of differentiation can
ultimately affect the profitability and survival of a company correct answers True
Consumers will bear switching costs if: correct answers he benefits of adopting the new
technology outweigh the costs of switching.
Technical standards do NOT play any role in product differentiation correct answers False
With reference to high-technology industries, which of the following is an example of a technical
standard? correct answers layout of keys on a keyboard
An advantage of being a first mover is that: correct answers there is an opportunity to increase
sales volume ahead of rivals.
Which of the following statements is true about technological paradigm shifts? correct answers
They have the potential to threaten the survival of established industries.
Consider a cost curve with production volume on the horizontal axis and marginal costs on the
vertical axis. What shape would the marginal cost curve most resemble in a high-tech industry?
correct answers Straight and Flat
Companies promoting alternative standards can be locked out of the market when consumers are
unwilling to bear the switching costs required to abandon the established standard and adopt the
new standard. correct answers True
Which of the following is NOT a way that standards can emerge in an industry? correct answers
Emerging rules and regulations about resource use and worker safety
