Ch5 Econ Value & Biz Models

___________________________ costs capture the value of the __________ alternative use of the resources employed.

Opportunity; best

Total costs include fixed and variable costs. ________________________ costs are independent of consumer demand, whereas __________________ costs change with the level of consumer demand.

Fixed; variable

As discussed in the textbook, Gillette invented the razor-razor-blade model of business. Which of the following is another example of this business model?

HP laser printers

Threadless (as discussed in Strategy Highlight 5.2) is an online apparel store. Its business model is quite different from traditional apparel stores. What is a major benefit of the Threadless approach to driving revenue?

It ensures the popularity of designs selected for production.

Zipcar innovatively created a new business model for the rental car industry. As shown in the ChapterCase opener about BlackBerry, however, innovation may not be enough to create a sustained competitive advantage. Zipcar has been acquired by Avis, but the original business model is expected to remain. What category of business model does Zipcar use?

Pay-as-you-go

As consumers, we each participate in the basic retail model of commerce. From a business perspective though, we should consider the wholesale and supply aspects of the products and services we purchase as consumers. This is important in the long run for ALL of the reasons EXCEPT which one?

The business model can affect the accounting data and change the off-balance sheet items.

One large component in the publishing industry that is missing from the music industry is the library. It is estimated that the U.S. has over 100,000 public and school libraries across the country. Though most of these libraries are not-for-profit, their presence still impacts the publishing industry. Which business model most closely fits the library system?

The subscription-based model, though the fees are typically paid through taxes or tuition

________________ denotes the dollar amount a consumer would attach to a good or service (that is, willingness to pay).

Value