Strategic Mgmt Exam 1 A+ Pass Solved Correctly
Study online at https://quizlet.com/_i5ccgt
1. How should firms in an industry defend against substitutions?: Increase incumbent
product buyer surplus
Increase customer switching costs
2. What are the 3 ways firms can slow imitation?: Property rights over key resources
establishing causal ambiguity regarding executing capabilities
sunk costs in developing a brand or capability
3. What are the underlying causes of the concentration-profitability relation-
ship?: More efficient
Interact strategically without cooperating
Collude to increase profits
4. Cartels fail at a remarkably high rate, why?: An inability to prevent entry into the business
Uncontrolled cheating or defection
Fluctuations in demand
Bargaining problems among the cartel members
5. Firms that repeatedly receive benefits from cooperation are said to have
developed a: relational capability
6. Five forces that drive down profitability are:: rivalry
buyer power
supplier power
potential entry
substitutes
1/8
, Strategic Mgmt Exam 1 A+ Pass Solved Correctly
Study online at https://quizlet.com/_i5ccgt
7. The basic conditions for collusion in a concentrated industry are:: mutual familiarity
repeated interaction
consistent roles
strategic complementarity
8. Which of the following is threatened by industry evolution?
a. firms pursuing value advantage only
b. firms pursuing cost advantage only
c. all types of competitive advantage
d. firms in niche markets only: C
9. Path dependence is mostly determined by?
a. the firms history of innovations
b. the firms location in different regulatory environments
c. the firms labor costs
d. the CEOs compensation: A
10. 10. The buyer's surplus is:
a. a source of customer sensitivity
b. the difference between a product's value and its market price
c. the difference between the cost to produce the product and its market price
d. a firm's total economic contribution: B
11. 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: C
12. 2. Which of the following are isolating mechanisms?
a. causal ambiguity
b. property rights
2/8
Study online at https://quizlet.com/_i5ccgt
1. How should firms in an industry defend against substitutions?: Increase incumbent
product buyer surplus
Increase customer switching costs
2. What are the 3 ways firms can slow imitation?: Property rights over key resources
establishing causal ambiguity regarding executing capabilities
sunk costs in developing a brand or capability
3. What are the underlying causes of the concentration-profitability relation-
ship?: More efficient
Interact strategically without cooperating
Collude to increase profits
4. Cartels fail at a remarkably high rate, why?: An inability to prevent entry into the business
Uncontrolled cheating or defection
Fluctuations in demand
Bargaining problems among the cartel members
5. Firms that repeatedly receive benefits from cooperation are said to have
developed a: relational capability
6. Five forces that drive down profitability are:: rivalry
buyer power
supplier power
potential entry
substitutes
1/8
, Strategic Mgmt Exam 1 A+ Pass Solved Correctly
Study online at https://quizlet.com/_i5ccgt
7. The basic conditions for collusion in a concentrated industry are:: mutual familiarity
repeated interaction
consistent roles
strategic complementarity
8. Which of the following is threatened by industry evolution?
a. firms pursuing value advantage only
b. firms pursuing cost advantage only
c. all types of competitive advantage
d. firms in niche markets only: C
9. Path dependence is mostly determined by?
a. the firms history of innovations
b. the firms location in different regulatory environments
c. the firms labor costs
d. the CEOs compensation: A
10. 10. The buyer's surplus is:
a. a source of customer sensitivity
b. the difference between a product's value and its market price
c. the difference between the cost to produce the product and its market price
d. a firm's total economic contribution: B
11. 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: C
12. 2. Which of the following are isolating mechanisms?
a. causal ambiguity
b. property rights
2/8
