MQM 385 Actual Questions and Correct Answers
Q1
A consolidated industry has the potential to be highly profitable. A consolidated industry is
dominated by a large number of small firms. A consolidated industry does not allow firms to set
prices. A consolidated industry has low entry barriers. (A consolidated industry is dominated by
a few firms, or even just one firm, and has the potential to be highly profitable.)
Answer: Which of the following is a feature of a consolidated industry?
Q2
Substitutes are not readily available since customers cannot use other means of transport.
Taken together, the competitive forces are quite favorable for generating a profit potential in
the airline industry. The combination of the competitive forces leads to intense rivalry among
existing airlines. Entry barriers in the airline industry are relatively high because of the high
costs involved. (As discussed in Strategy Highlight 3.2, taken together, the competitive forces
are quite unfavorable for generating a profit potential in the airline industry: low entry barriers,
high supplier power, high buyer power combined with low customer switching costs, and the
availability of low-cost substitutes. This type of hostile environment leads to intense rivalry
Answer: Which of the following statements about the five forces in the U.S. airline
industry is true?
Q3
A. They cannot employ
Answer: Incumbent firms can benefit from several important
Q4
technology efficiently.
Answer: sources of entry barriers. Economies of scale are one
Q5
B. They can spread fixed
Answer: such source. Which of the following is an implication
Q6
C. They benefit from a less
Answer: C. They benefit from a less
, Q7
D. They can demand
Answer: D. They can demand
Q8
(Economies of scale are
Answer: (Economies of scale are
Q9
A. Aura Software Inc. will
Answer: Aura Software Inc. has been operating in the country
Q10
C. Aura Software Inc. will
Answer: C. Aura Software Inc. will
Q11
D. Aura Software Inc. will
Answer: D. Aura Software Inc. will
Q12
(Aura Software Inc. will
Answer: (Aura Software Inc. will
Q13
A. An automobile
Answer: Which of the following firms most likely has the lowest
Q14
B. A fast food chain that
Answer: B. A fast food chain that
Q1
A consolidated industry has the potential to be highly profitable. A consolidated industry is
dominated by a large number of small firms. A consolidated industry does not allow firms to set
prices. A consolidated industry has low entry barriers. (A consolidated industry is dominated by
a few firms, or even just one firm, and has the potential to be highly profitable.)
Answer: Which of the following is a feature of a consolidated industry?
Q2
Substitutes are not readily available since customers cannot use other means of transport.
Taken together, the competitive forces are quite favorable for generating a profit potential in
the airline industry. The combination of the competitive forces leads to intense rivalry among
existing airlines. Entry barriers in the airline industry are relatively high because of the high
costs involved. (As discussed in Strategy Highlight 3.2, taken together, the competitive forces
are quite unfavorable for generating a profit potential in the airline industry: low entry barriers,
high supplier power, high buyer power combined with low customer switching costs, and the
availability of low-cost substitutes. This type of hostile environment leads to intense rivalry
Answer: Which of the following statements about the five forces in the U.S. airline
industry is true?
Q3
A. They cannot employ
Answer: Incumbent firms can benefit from several important
Q4
technology efficiently.
Answer: sources of entry barriers. Economies of scale are one
Q5
B. They can spread fixed
Answer: such source. Which of the following is an implication
Q6
C. They benefit from a less
Answer: C. They benefit from a less
, Q7
D. They can demand
Answer: D. They can demand
Q8
(Economies of scale are
Answer: (Economies of scale are
Q9
A. Aura Software Inc. will
Answer: Aura Software Inc. has been operating in the country
Q10
C. Aura Software Inc. will
Answer: C. Aura Software Inc. will
Q11
D. Aura Software Inc. will
Answer: D. Aura Software Inc. will
Q12
(Aura Software Inc. will
Answer: (Aura Software Inc. will
Q13
A. An automobile
Answer: Which of the following firms most likely has the lowest
Q14
B. A fast food chain that
Answer: B. A fast food chain that
