Answers Test _3 - Test #3: Winter 2006 Student Name:_ BA...

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Winter 2006 Student Name:_______ BA 315: Economy, Industry, and Competitive Analysis Charles H. Lundquist College of Business University of Oregon Ali Emami Please answer all questions. Each question is worth one point. For questions marked with (*), support your answers by showing your calculations, words, or graphs . Correct answers without such supports will not receive any credit. For multiple choices questions, circle only one of the letters associated with the right answer (do not make any other forms of marking on answers). Please do not attach extra paper. 1. The stronger the experience curve effect is in an industry A) the more that market share is a function of profitability. B) the more that a firm’s unit costs will go down as its cumulative production volume and production experience go up. C) the more likely that experienced producers of a product will have higher degrees of consumer loyalty than will new entrants to the market. D) the lower a firm’s annual cost increases will be and the bigger the scale economies it can achieve. E) the more that older, established firms will have higher profit margins as compared to relative newcomers to the industry. 2. The forces of competition in an industry are a function of A) the competitive pressures among rival firms that result from their jockeying for better market position and their maneuvers to gain a competitive edge. B) the availability of substitute products that are competitively priced. C) the threat of potential entry into the marketplace. D) the bargaining power of suppliers and customers. E) All of these. 3. The most powerful of the five competitive forces is usually A) the market attempts of companies in other industries to win customers over to their own substitute products. B) the rivalry and jockeying for position among competing sellers in an industry. C) the benefits that emerge from close collaboration with suppliers and the competitive pressures that such collaboration creates. D) the potential entry of new competitors. E) the bargaining power and leverage that large customers are able to exercise. 4. The intensity of rivalry among competing sellers is a function of A) whether the industry’s driving forces are strong and whether being the low-cost producer is a key success factor. B) whether there is a high degree of seller-supplier collaboration. C) whether barriers to entry are high. D) how vigorously rivals employ such tactics as lowering prices, introducing new products with snazzier features, increasing promotion and advertising, and other similar maneuvers calculated to gain a competitive edge. E) whether most firms are trying to differentiate their products or are content to market imitative products. 1
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This test prep was uploaded on 04/22/2008 for the course ECON 315 taught by Professor Aliemami during the Spring '08 term at University of Oregon.

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Answers Test _3 - Test #3: Winter 2006 Student Name:_ BA...

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