mem 8

26. Which of the following is not a way teams "collude" within professional sports markets? a)

Agreeing on ticket prices

32. Which of the following is a component of the Value Net? e)

All of the above

7. Which of following factors should be considered when assessing complements and substitutes? d)

All of the above

27. Which of the following is not a barrier to entry in professional sports markets? e)

Because the number of potential billionaire owners has risen dramatically, the purchase prices have dropped

10. What term refers to the ability of individual customers to negotiate purchase prices that extract profits from sellers? e)

Buyer power

11. Which of the following factors requires the least consideration when assessing supplier power relative to the downstream industry it sells to? a)

Competitiveness of the output market

15. Which of the following is not a feature of selective contracting (used by Managed Care Organizations) that intensified internal rivalry? d)

Contracted with hospitals that patients were most loyal to

17. What type of entrant would be described as a new entrant with no current brand identity, distribution channels or presence within an industry? e)

De novo

5. In which of the following ways can entry erode incumbents' profits? b)

Entrants decrease market concentration

31. In which of the following ways can entry erode incumbents' profits? a)

Entrants divide market demand among fewer sellers

6. Which of the following does not tend to affect the threat of entry? a)

Expectations about pre-entry competition

3. Which of the following best describes the term, internal rivalry? c)

Firms jockeying for share within a market.

28. What professional sports complement poses the biggest dilemma? C

Gambling

29. Which of the following is a complement to professional sports? b)

Gambling

19. Which of the following is generally thought of as a supplier in the hospital industry? c)

Hospital-based physician

16. Which of the following trends or methods has since helped reduce the pricing rivalry that had intensified by the late 1990s? e)

Hospitals consolidated (conducted mergers)

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

Many sellers in the market

18. Which of the following is generally thought of as a buyer in the hospital industry? d)

Patients

30. Who are the most powerful suppliers in professional sports? a)

Players unions

4. Which of the following conditions does not tend to heat up price competition? b)

Products are differentiated/buyers have high switching costs

23. Which of the following is not a significant entry barrier in the commercial airframe manufacturing market? c)

Raw materials and labor

2. Which of the following is not a part of the five-forces framework? C)

Regulation

14. Which of the following is not a factor that could intensify internal rivalry in the Chicago hospital market? c)

Relatively small number of doctors

22. How did European governments help Airbus aggressively pursue a 50% market share in its early years of operation? a)

Subsidies

8. Substitutes erode profits because of which of the following factor? b)

Substitutes divide demand and drive up internal rivalry

13. Which of the following is not a component of the Value Net? d)

Supplementors

24. Which of the following is the most likely substitute for commercial aircraft travel between Chicago and Tokyo? b)

Teleconferencing

9. Why are suppliers in a competitive upstream market said to have "indirect power"? e)

The can sell their services to the highest bidder

1. Which of the following is not a potential limitation of the five-forces framework? d)

The framework provides a structured way to systematically work through wide-ranging and often complex issues

21. Which of the following is a trend that Chicago area hospitals should least likely be worried about with respect to pricing? b)

There has been considerable consolidation (hospital mergers) in regional submarkets, including the city of Chicago and the important North Shore suburbs

12. What concept developed by Brandenburger and Nalebuff as a counterpart to Porter's five-forces consists of suppliers, customers, competitors and complementors? b)

Value net

20. Which of the following is true about hospital industry profits from 1980 to 2000 and a five forces analysis? b)

Virtually every factor caused profits to decrease

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

a) Number of competitors in downstream market

25. What entity as a supplier has the most substantial power over manufacturers in the commercial aircraft market? d)

Unions