CBAD 478 Final Review (latest update)
questions well answered
Which of the following makes a resource or capability more costly to imitate?
Select one:
a. Social complexity.
b. Causal certainty.
c. Abundant substitutes. - correct answer ✔✔a. Social complexity.
Which of the following would contribute to a higher threat from existing competitors?
Select one:
a. All of the other responses would lead to a higher threat.
b. There is a large number of competitors of roughly the same size.
c. There is a lack of product differentiation.
d. None of the other responses would lead to a higher threat.
e. There is slow industry growth. - correct answer ✔✔a. All of the other responses would lead to a
higher threat.
Muggle Mug Manufacturing produces mugs at a total cost of $5 per mug. Customers perceive $18 in
total benefits per mug. How much economic value is created per mug?
Select one:
a. 5
b. 18
c. 13
d. 23 - correct answer ✔✔c. 13
Mature industries are characterized by
,Select one:
a. a decrease in the amount of international competition.
b. a slowdown in the introduction of new products or services.
c. faster increases in production capacity.
d. an increase in total industry demand. - correct answer ✔✔b. a slowdown in the introduction of new
products or services
In an industry with perfect competition, firms should expect which level of performance?
Select one:
a. Competitive parity
b. Sustainable competitive disadvantage
c. Competitive disadvantage
d. Competitive advantage
e. Sustainable competitive advantage - correct answer ✔✔a. Competitive parity
Firms in industries characterized by ________ can expect to earn only competitive parity.
Select one:
a. perfect competition
b. monopolistic competition
c. monopoly
d. oligopoly - correct answer ✔✔a. perfect competition
Another firm is a complementor if customers value your product more when they have this firm's
product than they do when they have your product alone.
Select one:
True
False - correct answer ✔✔True
, Resource heterogeneity implies the firms have essentially the same skills in accomplishing an activity as
their competitors.
Select one:
True
False - correct answer ✔✔False
For a resource to have value, it must enable the firm to exploit an environmental opportunity or
neutralize an environmental threat.
Select one:
True
False - correct answer ✔✔True
When a firm creates more economic value than its rivals over a short period of time, the firm is said to
have sustainable competitive advantage.
Select one:
True
False - correct answer ✔✔False
Resources include a firm's tangible and intangible assets.
Select one:
True
False - correct answer ✔✔True
Which of the following is an economic measure of performance?
Select one:
a. Return on equity.
b. Earnings per share.
c. Return on assets.
questions well answered
Which of the following makes a resource or capability more costly to imitate?
Select one:
a. Social complexity.
b. Causal certainty.
c. Abundant substitutes. - correct answer ✔✔a. Social complexity.
Which of the following would contribute to a higher threat from existing competitors?
Select one:
a. All of the other responses would lead to a higher threat.
b. There is a large number of competitors of roughly the same size.
c. There is a lack of product differentiation.
d. None of the other responses would lead to a higher threat.
e. There is slow industry growth. - correct answer ✔✔a. All of the other responses would lead to a
higher threat.
Muggle Mug Manufacturing produces mugs at a total cost of $5 per mug. Customers perceive $18 in
total benefits per mug. How much economic value is created per mug?
Select one:
a. 5
b. 18
c. 13
d. 23 - correct answer ✔✔c. 13
Mature industries are characterized by
,Select one:
a. a decrease in the amount of international competition.
b. a slowdown in the introduction of new products or services.
c. faster increases in production capacity.
d. an increase in total industry demand. - correct answer ✔✔b. a slowdown in the introduction of new
products or services
In an industry with perfect competition, firms should expect which level of performance?
Select one:
a. Competitive parity
b. Sustainable competitive disadvantage
c. Competitive disadvantage
d. Competitive advantage
e. Sustainable competitive advantage - correct answer ✔✔a. Competitive parity
Firms in industries characterized by ________ can expect to earn only competitive parity.
Select one:
a. perfect competition
b. monopolistic competition
c. monopoly
d. oligopoly - correct answer ✔✔a. perfect competition
Another firm is a complementor if customers value your product more when they have this firm's
product than they do when they have your product alone.
Select one:
True
False - correct answer ✔✔True
, Resource heterogeneity implies the firms have essentially the same skills in accomplishing an activity as
their competitors.
Select one:
True
False - correct answer ✔✔False
For a resource to have value, it must enable the firm to exploit an environmental opportunity or
neutralize an environmental threat.
Select one:
True
False - correct answer ✔✔True
When a firm creates more economic value than its rivals over a short period of time, the firm is said to
have sustainable competitive advantage.
Select one:
True
False - correct answer ✔✔False
Resources include a firm's tangible and intangible assets.
Select one:
True
False - correct answer ✔✔True
Which of the following is an economic measure of performance?
Select one:
a. Return on equity.
b. Earnings per share.
c. Return on assets.
