Question 1

What term describes the optimal allocation of society's resources at a given point in time?

Accepted Answer

A) Creative destruction 
B) Static efficiency 
C) Dynamic efficiency 
D) Efficient allocation 
E) Resource efficiency 
A) Creative destruction 
B) Static efficiency 
C) Dynamic efficiency 
D) Efficient allocation 
E) Resource efficiency

Question 2

What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck,but returns to normal performance following?

Accepted Answer

A) Regression to the mean 
B) Competitive advantage 
C) Persistent performer 
D) Sustainable firm 
E) Predictable performance 
A) Regression to the mean 
B) Competitive advantage 
C) Persistent performer 
D) Sustainable firm 
E) Predictable performance

Question 3

Size,growth,and character of home demand for a firm's product are examples of what?

Accepted Answer

A) Factor conditions 
B) Demand conditions 
C) Supply conditions 
D) Related supplier or support industries 
E) Strategy,structure,and rivalry 
A) Factor conditions 
B) Demand conditions 
C) Supply conditions 
D) Related supplier or support industries 
E) Strategy,structure,and rivalry

Question 4

What term best describes clusters of activities that a firm does especially well in comparison with other firms?

Accepted Answer

A) Competitive advantage 
B) Resources 
C) Capabilities 
D) Threats to sustainability 
E) Strategic firm assets 
A) Competitive advantage 
B) Resources 
C) Capabilities 
D) Threats to sustainability 
E) Strategic firm assets

Question 5

Which of the following is the weakest an example of a "shock"?

Accepted Answer

A) Contracting to use another firm's proprietary process 
B) Product Innovations 
C) Discoveries of new sources of consumer value or market segments 
D) Shifts in demand 
E) Changes in public policy that enables firms to significantly shift their strategic position in a business 
A) Contracting to use another firm's proprietary process 
B) Product Innovations 
C) Discoveries of new sources of consumer value or market segments 
D) Shifts in demand 
E) Changes in public policy that enables firms to significantly shift their strategic position in a business

Question 6

Which of the following is not a Legal Restriction?

Accepted Answer

A) Patent 
B) Copyright 
C) Trademark 
D) Intellectual property 
E) Operating rights 
A) Patent 
B) Copyright 
C) Trademark 
D) Intellectual property 
E) Operating rights

Question 7

What term best characterizes the battle between firms to innovate first?

Accepted Answer

A) Market for new ideas 
B) New product competition 
C) R&D race 
D) Innovation competition 
E) Patent race 
A) Market for new ideas 
B) New product competition 
C) R&D race 
D) Innovation competition 
E) Patent race

Question 8

Which of the following products and services depend on standards?

Accepted Answer

A) Cellular communications 
B) Internet 
C) Video gaming 
D) High-definition television 
E) All of the above 
A) Cellular communications 
B) Internet 
C) Video gaming 
D) High-definition television 
E) All of the above

Question 9

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

Accepted Answer

A) Leveraging resources 
B) Strategic intent 
C) Strategic stretch 
D) Hypercompetition 
E) Global dominance 
A) Leveraging resources 
B) Strategic intent 
C) Strategic stretch 
D) Hypercompetition 
E) Global dominance

Question 10

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

Accepted Answer

A) The replacement effect 
B) Strategic intent 
C) Strategic stretch 
D) Hypercompetition 
E) The sunk cost effect 
A) The replacement effect 
B) Strategic intent 
C) Strategic stretch 
D) Hypercompetition 
E) The sunk cost effect

Question 11

Which of the following is not an example of a way a seller can increase switching costs?

Accepted Answer

A) Creating a product line compatible with parts that are made by other manufacturers 
B) Offering coupons that tie discounts to the completion of a series of transactions 
C) Offering warranties if product is not serviced at authorized dealer 
D) Bundling complementary products that fit together in a product line 
E) Offering "frequent customer" points that tie promotions to the completion of a series of transactions 
A) Creating a product line compatible with parts that are made by other manufacturers 
B) Offering coupons that tie discounts to the completion of a series of transactions 
C) Offering warranties if product is not serviced at authorized dealer 
D) Bundling complementary products that fit together in a product line 
E) Offering "frequent customer" points that tie promotions to the completion of a series of transactions

Question 12

What term best describes assets that are more valuable when used together than when separated?

Accepted Answer

A) Isolating 
B) Value-creating 
C) Imperfectly mobile 
D) Scarce 
E) Cospecialized 
A) Isolating 
B) Value-creating 
C) Imperfectly mobile 
D) Scarce 
E) Cospecialized

Question 13

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Accepted Answer

A) Market for ideas 
B) Community of ideas 
C) Innovation market 
D) Patent market 
E) Idea environment 
A) Market for ideas 
B) Community of ideas 
C) Innovation market 
D) Patent market 
E) Idea environment

Question 14

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

Accepted Answer

A) The replacement effect 
B) Strategic intent 
C) Strategic stretch 
D) Hypercompetition 
E) The sunk cost effect 
A) The replacement effect 
B) Strategic intent 
C) Strategic stretch 
D) Hypercompetition 
E) The sunk cost effect

What term describes the optimal allocation of society's resources at a given point in time?

What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck,but returns to normal performance following?

Size,growth,and character of home demand for a firm's product are examples of what?

What term best describes clusters of activities that a firm does especially well in comparison with other firms?

Which of the following is the weakest an example of a "shock"?

Which of the following is not a Legal Restriction?

What term best characterizes the battle between firms to innovate first?

Which of the following products and services depend on standards?

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

Which of the following is not an example of a way a seller can increase switching costs?

What term best describes assets that are more valuable when used together than when separated?

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

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

Industry Analysis

Strategic Positioning for Competitive Advantage

Information and Value Creation

Performance Measurement and Incentives

Strategy and Structure

Environment, Power, and Culture

Economics Primer

Filters

Exam 11: Sustaining Competitive Advantage

What term describes the optimal allocation of society's resources at a given point in time?

What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck,but returns to normal performance following?

Size,growth,and character of home demand for a firm's product are examples of what?

What term best describes clusters of activities that a firm does especially well in comparison with other firms?

Which of the following is the weakest an example of a "shock"?

Which of the following is not a Legal Restriction?

What term best characterizes the battle between firms to innovate first?

Which of the following products and services depend on standards?

Which of the following terms best describes the situation when sources of competitive advantage in an industry are being created and eroded at an increasingly rapid rate?

Which of the following terms best describes a phenomenon whereby,despite equal innovative capabilities,an entrant is willing to spend more to develop an innovation?

Which of the following is not an example of a way a seller can increase switching costs?

What term best describes assets that are more valuable when used together than when separated?

Which of the following terms best describes a place in which a firm can sell its ideas for full value?

Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?

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

Industry Analysis

Strategic Positioning for Competitive Advantage

Information and Value Creation

Performance Measurement and Incentives

Strategy and Structure

Environment, Power, and Culture

Economics Primer

Filters