mem 61-80

11. Which of the following represents total surplus in t he value creation equation, (B-P) + (P-C)? c)

B - C

10. Which of the following represents consumer surplus in the value creation equation, (B-P) + (P-C)? d)

B-P

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)

Competitive advantage

2. What is the perceived benefit of a product per unit consumed minus the product's monetary price? c)

Consumer surplus

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)

Consumer surplus parity

14. What is another term for a "win-win" business opportunity? c)

Gains from trade

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)

Indifference curve

4. What is one way to measure a firm's willingness-to-pay? d)

Input-output analysis

33. Price competition is increased when which of the following occurs?? a)

Many sellers in the market

3. What term describes the price at which a consumer is indifferent between buying a product and going without it? d)

Maximum willingness-to-pay

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

Number of competitors in downstream market

9. Which of the following represents producer surplus in the value creation equation, (B-P) + (P-C)? e)

P-C

6. Select the letter corresponding to the best answer. For a given consumer, any price-quality combination along the indifference curve yields the _______________. a)

Same consumer surplus

15. Which of the following is a capability? e)

Sourcing skills

7. The steepness (slope) of an indifference curve indicates which of the following? a)

The tradeoff a consumer is willing to make between price and quality

17. Which of the following is not a common characteristic of capabilities? c)

They are easy to reduce to simple algorithms or procedure guides

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)

Value chain

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)

Value-added analysis

16. Which of the following is a resource? d)

Workers with firm-specific expertise or know-how

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

d) Seller power