Quiz 3- Competitive advantage

Which of the following are cost drivers? 1. the learning curve 2. economies of scope 3. firm revenues 4. complementary products

1,2

Which of the following are isolating mechanisms? 1. causal ambiguity 2. the learning curve 3. property rights 4. transition costs

1,3,4

1. Which of the following is a condition that a resource/capability should meet to make a sound contribution to a firm's competitive advantage? I. Valuable II. Rare III. Costly to imitate or substitute IV. Appropriable

All of the above

Which of the following is NOT true for firms that pursue a differentiation strategy?

Charging the same price while increasing value can always attract new customers.

1. Which of the following is NOT true about generic strategies?

Firms who pursue cost leadership mostly ignore the value delivered to the customers and strive to attain the lowest cost possible to offer lowest prices.

Which of the following is NOT true about resources and capabilities?

Resources and capabilities are both relatively easy to acquire from the market

Which of the following statements is FALSE?

The cost leader in an industry can be identified by finding the company with the lowest prices.

Economies of scope occur when:

The total cost of producing two products is less than the sum of costs to produce them separately

Which of the following isolating mechanisms best describes how V Wireless and A Telecom are maintaining their market positions?

Transition costs

The difference between product value and market price is called:

the buyer's surplus