Worksheet 2 Final Exam
Entrants decrease market concentration
In which of the following ways can entry erode incumbents' profits?
Many sellers in the market
Price competition is increased when which of the following occurs??
Unions
What entity as a supplier has the most substantial power over manufacturers in the commercial aircraft market?
Seller power
What term refers to the ability of firms to negotiate purchase prices that extract higher profits from buyers?
De novo
What type of entrant would be described as a new entrant with no current brand identity, distribution channels or presence within an industry?
a) Availability of close substitutes and/or complements b) Price-value characteristics of substitutes/complements c) Price elasticity of industry demand d) All of the above e) None of the above
Which of following factors should be considered when assessing complements and substitutes?
Firms jockeying for share within a market.
Which of the following best describes the term, internal rivalry?
Competitiveness of the output market
Which of the following factors requires the least consideration when assessing supplier power relative to the downstream industry it sells to?
Number of competitors in downstream market
Which of the following factors requires the least consideration when assessing supplier power relative to the upstream industry in which it buys raw materials?
Gambling
Which of the following is a complement to professional sports?
There has been considerable consolidation (hospital mergers) in regional submarkets, including the city of Chicago and the important North Shore suburbs
Which of the following is a trend that Chicago area hospitals should least likely be worried about with respect to pricing?
Hospital-based physician
Which of the following is generally thought of as a supplier in the hospital industry?
Because the number of potential billionaire owners has risen dramatically, the purchase prices have dropped
Which of the following is not a barrier to entry in professional sports markets?
Supplementors
Which of the following is not a component of the Value Net?
Contracted with hospitals that patients were most loyal to
Which of the following is not a feature of selective contracting (used by Managed Care Organizations) that intensified internal rivalry?
The framework provides a structured way to systematically work through wide-ranging and often complex issues
Which of the following is not a potential limitation of the five-forces framework?
Raw materials and labor
Which of the following is not a significant entry barrier in the commercial airframe manufacturing market?
The can sell their services to the highest bidder
Why are suppliers in a competitive upstream market said to have "indirect power"?
