Question 1

What are economies of density as referred to in the airline industry?

Accepted Answer

A) Reducing the size of an aircraft used to increase load factor 
B) Economies achieved by an airline flying from spoke to spoke in a hub-and-spoke network 
C) Economies of scope along a given route 
D) Economies of scale along a given route 
E) Reductions in average cost as traffic volume decreases 
A) Reducing the size of an aircraft used to increase load factor 
B) Economies achieved by an airline flying from spoke to spoke in a hub-and-spoke network 
C) Economies of scope along a given route 
D) Economies of scale along a given route 
E) Reductions in average cost as traffic volume decreases

Question 2

Why is firm specific learning better in general for an organization?

Accepted Answer

A) Encourages individuality among workers within the organization 
B) Keeps unionized workers happy 
C) Allows workers to acquire skills they can then "shop around" 
D) Ensures worker knowledge is tied to current employment 
E) Increases complexity and creativity in the organization 
A) Encourages individuality among workers within the organization 
B) Keeps unionized workers happy 
C) Allows workers to acquire skills they can then "shop around" 
D) Ensures worker knowledge is tied to current employment 
E) Increases complexity and creativity in the organization

Question 3

What might cause a firm to want to increase production past the point where additional revenues offset additional costs?

Accepted Answer

A) The firm is enjoying the benefits of the learning curve 
B) Future production costs will be higher 
C) Managers are being rewarded on the basis of short-run profits 
D) The firm relies on direct growth incentives 
E) The firm wants to violate the rule of equating marginal revenue equal to marginal cost 
A) The firm is enjoying the benefits of the learning curve 
B) Future production costs will be higher 
C) Managers are being rewarded on the basis of short-run profits 
D) The firm relies on direct growth incentives 
E) The firm wants to violate the rule of equating marginal revenue equal to marginal cost

Question 4

Which of the following is not a benefit Ace captures through a cooperative of stores while maintaining independent store ownership?

Accepted Answer

A) Access to same distribution channels as large retailers 
B) No central office providing direction 
C) Quantity discounts 
D) Local tailored product offerings 
E) Location in Small neighborhoods 
A) Access to same distribution channels as large retailers 
B) No central office providing direction 
C) Quantity discounts 
D) Local tailored product offerings 
E) Location in Small neighborhoods

Question 5

Why might a large firm actually be at an advantage over a smaller firm with respect to labor?

Accepted Answer

A) Large generally pay a compensating differential to attract workers 
B) Worker turnover is generally lower 
C) Large firms enjoy better scale economies when negotiating with health insurance companies for health benefits 
D) Large firms are generally less attractive to qualified, upward mobile workers 
E) Large firms often have to draw workers from a greater distance to fill their ranks 
A) Large generally pay a compensating differential to attract workers 
B) Worker turnover is generally lower 
C) Large firms enjoy better scale economies when negotiating with health insurance companies for health benefits 
D) Large firms are generally less attractive to qualified, upward mobile workers 
E) Large firms often have to draw workers from a greater distance to fill their ranks

What are economies of density as referred to in the airline industry?

Why is firm specific learning better in general for an organization?

What might cause a firm to want to increase production past the point where additional revenues offset additional costs?

Which of the following is not a benefit Ace captures through a cooperative of stores while maintaining independent store ownership?

Why might a large firm actually be at an advantage over a smaller firm with respect to labor?

Basic Microeconomic Principles

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters

Exam 2: Economies of Scale and Scope

What are economies of density as referred to in the airline industry?

Why is firm specific learning better in general for an organization?

What might cause a firm to want to increase production past the point where additional revenues offset additional costs?

Which of the following is not a benefit Ace captures through a cooperative of stores while maintaining independent store ownership?

Why might a large firm actually be at an advantage over a smaller firm with respect to labor?

Basic Microeconomic Principles

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters