Copyright 2006 Biz/ed
Sales and Marketing
Research and Development
Finance and Accounts
Introduction to Strategy and
Department of Economics/USE
Chair of Strategy, Organisation, & Governance
Notes for lecture of 13 November 2013
Professor Hans Schenk
ECB2SO: The team
The Chair: Strategy, O
Summary of Economics of Strategy 6th edition, Besanko et al.
Asterisk Means example
(Q) means Question
Associations between paragraphs
Chapter 2: The Horizontal Boundaries of the Firm
Important concepts in economy:
- Horizontal bounda
Organisation and Timing
Key Steps For NPD Success
Ensure NPD goals and objectives:
Fit with strategy
Are adequately resourced
Are well prioritised
1. It has been said that Porter's five-forces analysis turns antirust law on its head. What do
you think this means?
The framework of Porter's doesn't take the role of the Government into account while in reality
the government as a regulator can affect t
1. Why are the Cournot and Bertrand models considered static? What aspects of real world
behavior might be missing in static models?
Because they assume firms to behave simultaneously
Cournot (Bertrand) assumptions
Firms have market power, i.e. each firms
1. Why are the concepts of own(?) and cross-price elasticities of demand essential to
competitor identification and market defenition?
Cross-price elasticities is the case when products of different firms are substitutes. It states what
happens with the d
Strategic Positioning for Competitive Advantage
Indentifying important concepts for competitive advantage in a market. The chapter is divided in
1) Defining competitive advantage (firm must create more value than its rivals);
1. Describe the vertical chain for the production of motion pictures (film). Describe the
extent of vertical integration of the steps in this chain.
(Production - distribution - consumption)
- Major studios/Independent production companies (wr
1. What is the Property Rights Theory of the firm? Is this theory consistent with the theories of
vertical integration describe in chapter 3?
The property rights theory of the firm proposes that integration determines the ownership an
1. In a monopolistically competitive industry, firms set price
a. equal to marginal cost since each firm is a price taker.
b. below marginal cost since each firm is a price taker.
c. above marginal cost
Problem Set 5
Econ 202 (03, 04, and 05) Spring 2003
(Dr. Tin-Chun Lin)
1. If a consumer is willing and able to pay $200 for a particular good but only has to pay $140,
The consumer surplus is $340.
The consumer surplus is $60.
Income Inequality and Poverty
1. A government's policy of redistributing income makes the income distribution more equitable,
a. distorts incentives, and makes the allocation of resources more efficient.
b. alters behavior, and
Earnings and Discrimination
1. A difference in wages that reflects differences in the nonpay features of two jobs is called
a. a compensating differential.
b. a wage adjustment.
c. an efficiency wage.
d. a minimum wage.
KANSEN VOOR DE
Afstudeerscriptie Master City Developer
Erasmus Universtiteit Rotterdam
Amsterdam, augustus 2005
KANSEN VOOR DE
Practice Answers No. 3; Managing Business Costs
The table below shows the weekly costs of production for an imaginary
firm over a range of output (from 0 to 600 units per week).
Fill in the missing values
MULTIPLE CHOICE QUESTIONS (MCQ) PREPARING
FOR THE FIRST MIDTERM
Opportunity Costs & the Production Possibility Frontier
Opportunity costs are defined as:
The recurring expenses which are related to the operation of a business, or to the