Question 1

​In the IO perspective,it is important to enter an industry with

Accepted Answer

A) ​High barriers to entry 
B) High buyer power 
C) High supplier power 
D) ​All of the above 
A) ​High barriers to entry 
B) High buyer power 
C) High supplier power 
D) ​All of the above

Question 2

​Typical structure characteristics of interest to Industrial Organization researchers include

Accepted Answer

A) ​Barriers to entry 
B) Product differentiation among firms 
C) The number and size distribution of firms 
D) ​All of the above 
A) ​Barriers to entry 
B) Product differentiation among firms 
C) The number and size distribution of firms 
D) ​All of the above

Question 3

​The concept that explains the firm's ability to produce output with differing bundles of resources is called

Accepted Answer

A) ​Resource heterogeneity 
B) Resource immobility 
C) Barriers to entry 
D) ​Imitability 
A) ​Resource heterogeneity 
B) Resource immobility 
C) Barriers to entry 
D) ​Imitability

Question 4

​All of these allow a firm to differentiate its product,except

Accepted Answer

A) ​Product branding 
B) Reducing quality 
C) Advertising 
D) ​Limiting availability 
A) ​Product branding 
B) Reducing quality 
C) Advertising 
D) ​Limiting availability

Question 5

​Which of the following is more likely to be able to command a higher price for its products

Accepted Answer

A) ​A specialty frozen yogurt producer,with high quality product 
B) A mall kiosk selling costume jewelry 
C) A specialty toy store that allows customers to self-design teddy bears 
D) ​Both A&C 
A) ​A specialty frozen yogurt producer,with high quality product 
B) A mall kiosk selling costume jewelry 
C) A specialty toy store that allows customers to self-design teddy bears 
D) ​Both A&C

Question 6

​Supplier power tends to be low when

Accepted Answer

A) ​The supplier provides critical inputs 
B) The supplier provides homogenous inputs 
C) Both A&B 
D) ​None of the above 
A) ​The supplier provides critical inputs 
B) The supplier provides homogenous inputs 
C) Both A&B 
D) ​None of the above

Question 7

​Supplier power tends to be low when

Accepted Answer

A) ​Suppliers are less concentrated 
B) Inputs provided by the supplier are not vital 
C) Inputs are homogenous 
D) ​All the above 
A) ​Suppliers are less concentrated 
B) Inputs provided by the supplier are not vital 
C) Inputs are homogenous 
D) ​All the above

Question 8

Industries with high barriers to entry​

Accepted Answer

A) ​Pushes profits to normal returns 
B) Increases the likelihood of firms entering the industry 
C) Help firms sustain long term profits 
D) ​Increases the number of competitors 
A) ​Pushes profits to normal returns 
B) Increases the likelihood of firms entering the industry 
C) Help firms sustain long term profits 
D) ​Increases the number of competitors

Question 9

​Which of the following could potentially capture the value created in a market

Accepted Answer

A) ​Suppliers 
B) Industry rivals 
C) Buyers 
D) ​All of the above 
A) ​Suppliers 
B) Industry rivals 
C) Buyers 
D) ​All of the above

Question 10

In the IO perspective it is important to enter an industry with​

Accepted Answer

A) ​High barriers to entry 
B) Differentiated products 
C) Small number of competing firms of different sizes 
D) ​All of the above 
A) ​High barriers to entry 
B) Differentiated products 
C) Small number of competing firms of different sizes 
D) ​All of the above

Question 11

​To stay one step ahead of the forces of competition,a firm can adopt any one of these strategies except

Accepted Answer

A) ​Cost reduction 
B) Product differentiation 
C) Operating where marginal benefits equal marginal costs 
D) ​Develop non-fungible valuable resources 
A) ​Cost reduction 
B) Product differentiation 
C) Operating where marginal benefits equal marginal costs 
D) ​Develop non-fungible valuable resources

Question 12

​Having a competitive advantage emanates from

Accepted Answer

A) ​Increased price 
B) Decreased cost 
C) One or both of the above 
D) ​None of the above 
A) ​Increased price 
B) Decreased cost 
C) One or both of the above 
D) ​None of the above

Question 13

​Rivalry among firms would tend to be high if

Accepted Answer

A) ​Firms are located further from each other 
B) Firms are located close to one another 
C) There is only one firm in the market 
D) ​None of the above 
A) ​Firms are located further from each other 
B) Firms are located close to one another 
C) There is only one firm in the market 
D) ​None of the above

Question 14

​To decrease buyer power,the firm can

Accepted Answer

A) ​Differentiate its product 
B) Decrease dependency on a single buyer 
C) Sell its products in locations with multiple buyers 
D) ​All of the above 
A) ​Differentiate its product 
B) Decrease dependency on a single buyer 
C) Sell its products in locations with multiple buyers 
D) ​All of the above

Question 15

​Supplier power tends to be lower when

Accepted Answer

A) ​Suppliers are less concentrated 
B) There are low costs to switching between suppliers 
C) Both A&B 
D) ​None of the above 
A) ​Suppliers are less concentrated 
B) There are low costs to switching between suppliers 
C) Both A&B 
D) ​None of the above

Question 16

More buyer power means​

Accepted Answer

A) ​Buyers would find it easier to capture the value created 
B) Buyers would find it more difficult to capture the value created 
C) Buyers would not be able to capture any value created 
D) ​None of the above 
A) ​Buyers would find it easier to capture the value created 
B) Buyers would find it more difficult to capture the value created 
C) Buyers would not be able to capture any value created 
D) ​None of the above

Question 17

​Supplier power is high when

Accepted Answer

A) ​Suppliers are concentrated 
B) The inputs provided are critical 
C) The inputs provided are unsubstitutable 
D) ​All of the above 
A) ​Suppliers are concentrated 
B) The inputs provided are critical 
C) The inputs provided are unsubstitutable 
D) ​All of the above

Question 18

​Rivalry among firms would tend to be high if

Accepted Answer

A) ​Customers are locked into the competitors technology 
B) Customers can easily switch between competitor's technologies 
C) All of the above 
D) ​None of the above 
A) ​Customers are locked into the competitors technology 
B) Customers can easily switch between competitor's technologies 
C) All of the above 
D) ​None of the above

Question 19

​Intense market competition is ________ for producers,since it_______.

Accepted Answer

A) ​Bad;erode consumer surplus 
B) Bad,erode producer profits 
C) Good,increase the price level in the market 
D) ​Good;decrease the price level in the market 
A) ​Bad;erode consumer surplus 
B) Bad,erode producer profits 
C) Good,increase the price level in the market 
D) ​Good;decrease the price level in the market

Question 20

​Rivalry among firms would tend to be highest if

Accepted Answer

A) ​the industry is growing quickly 
B) the industry is growing slowly 
C) the industry is shrinking 
D) ​None of the above 
A) ​the industry is growing quickly 
B) the industry is growing slowly 
C) the industry is shrinking 
D) ​None of the above

Exam 9: Strategy: the Quest to Keep Profit From Eroding

​In the IO perspective,it is important to enter an industry with

​Typical structure characteristics of interest to Industrial Organization researchers include

​The concept that explains the firm's ability to produce output with differing bundles of resources is called

​All of these allow a firm to differentiate its product,except

​Which of the following is more likely to be able to command a higher price for its products

​Supplier power tends to be low when

​Supplier power tends to be low when

Industries with high barriers to entry​

​Which of the following could potentially capture the value created in a market

In the IO perspective it is important to enter an industry with​

​To stay one step ahead of the forces of competition,a firm can adopt any one of these strategies except

​Having a competitive advantage emanates from

​Rivalry among firms would tend to be high if

​To decrease buyer power,the firm can

​Supplier power tends to be lower when

More buyer power means​

​Supplier power is high when

​Rivalry among firms would tend to be high if

​Intense market competition is ________ for producers,since it_______.

​Rivalry among firms would tend to be highest if

The One Lessor of Business

Benefits, Costs, and Decisions

Extent How Much Decisions

Investment Decisions: Look Ahead and Reason Back

Simple Pricing

Economies of Scale and Scope

Understanding Markets and Industry Changes

Market Structure and Long Run Equilibrium

Foreign Exchange, Trade, and Bubbles

More Realistic and Complex Pricing

Direct Price Discrimination

Strategic Games

Bargaining

Making Decisions With Uncertainty

Auctions

The Problem of Adverse Selection

The Problem of Moral Hazard

Getting Employees to Work in the Firms Best Interest

Getting Divisions to Work in the Firms Best Interest

Managing Vertical Relationships

Filters

In the IO perspective,it is important to enter an industry with

Typical structure characteristics of interest to Industrial Organization researchers include

The concept that explains the firm's ability to produce output with differing bundles of resources is called

All of these allow a firm to differentiate its product,except

Which of the following is more likely to be able to command a higher price for its products

Supplier power tends to be low when

Supplier power tends to be low when

Industries with high barriers to entry

Which of the following could potentially capture the value created in a market

In the IO perspective it is important to enter an industry with

To stay one step ahead of the forces of competition,a firm can adopt any one of these strategies except

Having a competitive advantage emanates from

Rivalry among firms would tend to be high if

To decrease buyer power,the firm can

Supplier power tends to be lower when

More buyer power means

Supplier power is high when

Rivalry among firms would tend to be high if

Intense market competition is __ for producers,since it_.

Rivalry among firms would tend to be highest if