399: Quiz 3

The major value drivers that managers have at their disposal include ...

product features, customer service, and complements

Shareholders are the legal owners of...

public companies

Accounting data are ...

historical data and thus backward-looking.

.... primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.

A business-level strategy...

A firm operating on an 80 percent learning curve will achieve lower per-unit costs after doubling its output than a firm operating on a 90 percent learning curve will.

TRUE

A firm's stock price generally increases only if the firm's rate of growth EXCEEDS investors' expectations.

TRUE

Minimum efficient scale (MES)...

is the output range needed to bring down the cost per unit as much as possible

Competitive advantage goes to the firm that achieves the...

largest economic value created

When a firm operates at the ___________ __________ ____________, the returns to scale are constant and the cost per unit cannot be reduced any further.

minimum efficient scale

The efficient market hypothesis suggests that the market price of a firm's stock is an ...

objective indicator of a firm's past, current, and expected future performance.

When a firm makes choices between a cost or value position to achieve competitive advantage, it is primarily involved in ..

strategic trade-offs.

Largest Economic value ...

which is the difference between V, the maximum amount a customer is willing to pay (rather than the price they end up paying in the store), and C, the cost to produce the good or service.