Question 1

Why are suppliers in a competitive upstream market said to have "indirect power"?

Accepted Answer

A) They can sell their services to the lowest bidder 
B) They are always concentrated 
C) Their customers are always locked into relationships with them 
D) The price they charge never depends on supply and demand in the upstream market 
E) The can sell their services to the highest bidder 
A) They can sell their services to the lowest bidder 
B) They are always concentrated 
C) Their customers are always locked into relationships with them 
D) The price they charge never depends on supply and demand in the upstream market 
E) The can sell their services to the highest bidder E

Question 2

What term refers to the ability of firms to negotiate purchase prices that extract higher profits from buyers?

Accepted Answer

A) Substitutes and Complements 
B) Competition 
C) Customer power 
D) Seller power 
E) Buyer power 
A) Substitutes and Complements 
B) Competition 
C) Customer power 
D) Seller power 
E) Buyer power D

Question 3

What type of entrant would be described as a new entrant with no current brand identity,distribution channels or presence within an industry?

Accepted Answer

A) Fast follower 
B) Passive 
C) Aggressive 
D) Innovator 
E) De novo 
A) Fast follower 
B) Passive 
C) Aggressive 
D) Innovator 
E) De novo E

Question 4

Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?

Accepted Answer

A) Had infrequent (contract lengths of two to three years)and lumpy (one insurer may have represented over 5% of a hospital's business)sales 
B) Treated all hospitals as identical 
C) Kept price negotiations between insurers and hospitals secret,encouraging hospitals to lower prices to win contracts 
D) Contracted with hospitals that patients were most loyal to 
E) Created pressure for hospitals to win each individual contract with no thought of future consequences 
A) Had infrequent (contract lengths of two to three years)and lumpy (one insurer may have represented over 5% of a hospital's business)sales 
B) Treated all hospitals as identical 
C) Kept price negotiations between insurers and hospitals secret,encouraging hospitals to lower prices to win contracts 
D) Contracted with hospitals that patients were most loyal to 
E) Created pressure for hospitals to win each individual contract with no thought of future consequences

Question 5

Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?

Accepted Answer

A) Number of competitors in downstream market 
B) Purchase volume of raw materials 
C) Availability of substitute inputs 
D) Number of upstream suppliers 
E) Ability of suppliers to price discriminate 
A) Number of competitors in downstream market 
B) Purchase volume of raw materials 
C) Availability of substitute inputs 
D) Number of upstream suppliers 
E) Ability of suppliers to price discriminate

Question 6

Which of the following factors requires the least consideration when assessing supplier power relative to the downstream industry it sells to?

Accepted Answer

A) Competitiveness of the output market 
B) Purchase volume of downstream firms 
C) Availability of substitute inputs 
D) Threat of forward integration by suppliers 
E) Ability of suppliers to price discriminate 
A) Competitiveness of the output market 
B) Purchase volume of downstream firms 
C) Availability of substitute inputs 
D) Threat of forward integration by suppliers 
E) Ability of suppliers to price discriminate

Question 7

Which of the following conditions does not tend to heat up price competition?

Accepted Answer

A) Many sellers in the market 
B) Products are differentiated/buyers have high switching costs 
C) Some firms have excess capacity 
D) The industry is stagnant or declining 
E) There are large/infrequent sales orders 
A) Many sellers in the market 
B) Products are differentiated/buyers have high switching costs 
C) Some firms have excess capacity 
D) The industry is stagnant or declining 
E) There are large/infrequent sales orders

Question 8

Which of the following is a trend that Chicago area hospitals should least likely be worried about with respect to pricing?

Accepted Answer

A) The FTC recently won an antitrust case that forced the members of the Evanston Northwestern Healthcare system to negotiate independently with insurers 
B) There has been considerable consolidation (hospital mergers)in regional submarkets,including the city of Chicago and the important North Shore suburbs 
C) Employers are asking employees to bear more of their own health care costs.At the same time some employers are reconsidering the decision to opt for wide,but costly MCO networks 
D) If regulatory barriers fall,entry by specialty hospitals in wealthier communities could skim off some of the areas' most profitable patients 
E) Employers,payers,regulators and patients are demanding and getting more information about hospital quality 
A) The FTC recently won an antitrust case that forced the members of the Evanston Northwestern Healthcare system to negotiate independently with insurers 
B) There has been considerable consolidation (hospital mergers)in regional submarkets,including the city of Chicago and the important North Shore suburbs 
C) Employers are asking employees to bear more of their own health care costs.At the same time some employers are reconsidering the decision to opt for wide,but costly MCO networks 
D) If regulatory barriers fall,entry by specialty hospitals in wealthier communities could skim off some of the areas' most profitable patients 
E) Employers,payers,regulators and patients are demanding and getting more information about hospital quality

Question 9

Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?

Accepted Answer

A) Patients began accepting MCOs with "narrow networks" and MCOs had the upper hand in negotiating with hospitals for inclusion in networks 
B) Hospitals removed brand identities 
C) Hospitals dropped "centers of excellence" from their hospitals 
D) Hospitals consolidating away from related products 
E) Hospitals consolidated (conducted mergers) 
A) Patients began accepting MCOs with "narrow networks" and MCOs had the upper hand in negotiating with hospitals for inclusion in networks 
B) Hospitals removed brand identities 
C) Hospitals dropped "centers of excellence" from their hospitals 
D) Hospitals consolidating away from related products 
E) Hospitals consolidated (conducted mergers)

Question 10

Who are the most powerful suppliers in professional sports?

Accepted Answer

A) Players unions 
B) Referees 
C) Owners 
D) Politicians 
E) Cities 
A) Players unions 
B) Referees 
C) Owners 
D) Politicians 
E) Cities

Question 11

Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market?

Accepted Answer

A) Relatively large number of hospitals 
B) Considerable variation in production costs 
C) Relatively small number of doctors 
D) Excess capacity 
E) Aging baby boomers increasing demand for admissions 
A) Relatively large number of hospitals 
B) Considerable variation in production costs 
C) Relatively small number of doctors 
D) Excess capacity 
E) Aging baby boomers increasing demand for admissions

Question 12

What entity as a supplier has the most substantial power over manufacturers in the commercial aircraft market?

Accepted Answer

A) Raw materials suppliers 
B) Airlines 
C) Aircraft leasing companies 
D) Unions 
E) Passengers 
A) Raw materials suppliers 
B) Airlines 
C) Aircraft leasing companies 
D) Unions 
E) Passengers

Question 13

Which of the following is a complement to professional sports?

Accepted Answer

A) Merchandise sales 
B) Gambling 
C) Luxury Boxes at stadiums 
D) Food and beverage sales 
E) None of the above 
A) Merchandise sales 
B) Gambling 
C) Luxury Boxes at stadiums 
D) Food and beverage sales 
E) None of the above

Question 14

Which of the following is not a way teams "collude" within professional sports markets?

Accepted Answer

A) Agreeing on ticket prices 
B) Agreeing on rules and schedules 
C) Employing the same pool of referees 
D) Sharing national broadcast revenues 
E) Agreeing on rookie drafts 
A) Agreeing on ticket prices 
B) Agreeing on rules and schedules 
C) Employing the same pool of referees 
D) Sharing national broadcast revenues 
E) Agreeing on rookie drafts

Question 15

Price competition is increased when which of the following occurs??

Accepted Answer

A) Many sellers in the market 
B) Products are differentiated 
C) Firms are producing at capacity 
D) Buyers have high switching costs 
E) Firms purchase raw materials from the same suppliers 
A) Many sellers in the market 
B) Products are differentiated 
C) Firms are producing at capacity 
D) Buyers have high switching costs 
E) Firms purchase raw materials from the same suppliers

Question 16

Which of the following is not a barrier to entry in professional sports markets?

Accepted Answer

A) Each league has rules governing the addition of new franchises 
B) Potential new owners must pay current owners hundreds of millions of dollars 
C) Most potential owners must offer to build new stadiums 
D) Incumbent teams have rights to veto franchises in their own geographic markets 
E) Because the number of potential billionaire owners has risen dramatically,the purchase prices have dropped 
A) Each league has rules governing the addition of new franchises 
B) Potential new owners must pay current owners hundreds of millions of dollars 
C) Most potential owners must offer to build new stadiums 
D) Incumbent teams have rights to veto franchises in their own geographic markets 
E) Because the number of potential billionaire owners has risen dramatically,the purchase prices have dropped

Question 17

Which of the following is a component of the Value Net?

Accepted Answer

A) Suppliers 
B) Customers 
C) Competitors 
D) Complementors 
E) All of the above 
A) Suppliers 
B) Customers 
C) Competitors 
D) Complementors 
E) All of the above

Question 18

Which of the following is not a part of the five-forces framework?

Accepted Answer

A) Supplier Power 
B) Internal rivalry 
C) Regulation 
D) Buyer Power 
E) Substitutes and Complements 
A) Supplier Power 
B) Internal rivalry 
C) Regulation 
D) Buyer Power 
E) Substitutes and Complements

Question 19

What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers?

Accepted Answer

A) Substitutes and Complements 
B) Competition 
C) Customer power 
D) Seller power 
E) Buyer power 
A) Substitutes and Complements 
B) Competition 
C) Customer power 
D) Seller power 
E) Buyer power

Question 20

What professional sports complement poses the biggest dilemma?

Accepted Answer

A) Cheerleaders 
B) Mascots 
C) Gambling 
D) Television 
E) Radio 
A) Cheerleaders 
B) Mascots 
C) Gambling 
D) Television 
E) Radio

Why are suppliers in a competitive upstream market said to have "indirect power"?

What term refers to the ability of firms to negotiate purchase prices that extract higher profits from buyers?

What type of entrant would be described as a new entrant with no current brand identity,distribution channels or presence within an industry?

Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?

Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?

Which of the following factors requires the least consideration when assessing supplier power relative to the downstream industry it sells to?

Which of the following conditions does not tend to heat up price competition?

Which of the following is a trend that Chicago area hospitals should least likely be worried about with respect to pricing?

Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?

Who are the most powerful suppliers in professional sports?

Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market?

What entity as a supplier has the most substantial power over manufacturers in the commercial aircraft market?

Which of the following is a complement to professional sports?

Which of the following is not a way teams "collude" within professional sports markets?

Price competition is increased when which of the following occurs??

Which of the following is not a barrier to entry in professional sports markets?

Which of the following is a component of the Value Net?

Which of the following is not a part of the five-forces framework?

What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers?

What professional sports complement poses the biggest dilemma?

The Power of Principles: A Historical Perspective

The Horizontal Boundaries of the Firm

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Strategic Positioning for Competitive Advantage

Information and Value Creation

Sustaining Competitive Advantage

Performance Measurement and Incentives

Strategy and Structure

Environment, Power, and Culture

Economics Primer

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Exam 8: Industry Analysis

Why are suppliers in a competitive upstream market said to have "indirect power"?

What term refers to the ability of firms to negotiate purchase prices that extract higher profits from buyers?

What type of entrant would be described as a new entrant with no current brand identity,distribution channels or presence within an industry?

Which of the following is not a feature of selective contracting (used by Managed Care Organizations)that intensified internal rivalry?

Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?

Which of the following factors requires the least consideration when assessing supplier power relative to the downstream industry it sells to?

Which of the following conditions does not tend to heat up price competition?

Which of the following is a trend that Chicago area hospitals should least likely be worried about with respect to pricing?

Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s?

Who are the most powerful suppliers in professional sports?

Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market?

What entity as a supplier has the most substantial power over manufacturers in the commercial aircraft market?

Which of the following is a complement to professional sports?

Which of the following is not a way teams "collude" within professional sports markets?

Price competition is increased when which of the following occurs??

Which of the following is not a barrier to entry in professional sports markets?

Which of the following is a component of the Value Net?

Which of the following is not a part of the five-forces framework?

What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers?

What professional sports complement poses the biggest dilemma?

The Power of Principles: A Historical Perspective

The Horizontal Boundaries of the Firm

The Vertical Boundaries of the Firm

Integration and Its Alternatives

Competitors and Competition

Entry and Exit

The Dynamics Competing Across Time

Strategic Positioning for Competitive Advantage

Information and Value Creation

Sustaining Competitive Advantage

Performance Measurement and Incentives

Strategy and Structure

Environment, Power, and Culture

Economics Primer

Filters