question
33. Price competition is increased when which of the following occurs??
a)
a)
answer
Many sellers in the market
question
**34. What term refers to the ability of firms to negotiate purchase prices that extract higher profits from buyers?
answer
d) Seller power
question
Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?
answer
Number of competitors in downstream market
question
1. What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market?
b)
b)
answer
Competitive advantage
question
2. What is the perceived benefit of a product per unit consumed minus the product's monetary price?
c)
c)
answer
Consumer surplus
question
3. What term describes the price at which a consumer is indifferent between buying a product and going without it?
d)
d)
answer
Maximum willingness-to-pay
question
4. What is one way to measure a firm's willingness-to-pay?
d)
d)
answer
Input-output analysis
question
5. What type of curve can be used to describe the set of price-quality combinations that yields the same consumer surplus to an individual?
e)
e)
answer
Indifference curve
question
6. Select the letter corresponding to the best answer. For a given consumer, any price-quality combination along the indifference curve yields the _______________.
a)
a)
answer
Same consumer surplus
question
7. The steepness (slope) of an indifference curve indicates which of the following?
a)
a)
answer
The tradeoff a consumer is willing to make between price and quality
question
8. When multiple firms' price-quality positions line up along the same indifference curve offering a consumer the same amount of consumer surplus, what term describes the situation?
d)
d)
answer
Consumer surplus parity
question
9. Which of the following represents producer surplus in the value creation equation, (B-P) + (P-C)?
e)
e)
answer
P-C
question
10. Which of the following represents consumer surplus in the value creation equation, (B-P) + (P-C)?
d)
d)
answer
B-P
question
11. Which of the following represents total surplus in t he value creation equation, (B-P) + (P-C)?
c)
c)
answer
B - C
question
12. Which of the following terms is a concept, developed by Michael Porter, which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?
c)
c)
answer
Value chain
question
13. What term describes the process of using market prices of unfinished and semi-finished goods to estimate the incremental value-created by distinctive parts of the value chain?
a)
a)
answer
Value-added analysis
question
14. What is another term for a "win-win" business opportunity?
c)
c)
answer
Gains from trade
question
15. Which of the following is a capability?
e)
e)
answer
Sourcing skills
question
16. Which of the following is a resource?
d)
d)
answer
Workers with firm-specific expertise or know-how
question
17. Which of the following is not a common characteristic of capabilities?
c)
c)
answer
They are easy to reduce to simple algorithms or procedure guides
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