Worksheet 4 - Final Exam
Demand conditions
Size, growth, and character of home demand for a firm's product are examples of what?
Network effect
What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?
Cospecialized
What term best describes assets that are more valuable when used together than when separated?
Capabilities
What term best describes clusters of activities that a firm does especially well in comparison with other firms?
Path dependence
What term best describes the characteristic of a process if past circumstances could exclude certain evolutions in the future?
Resource-based theory of the firm
What term describes a framework used in strategy based on resource heterogeneity which posits that for a competitive advantage to be sustainable, it must be underpinned by resource capabilities that are scarce and imperfectly mobile?
Static efficiency
What term describes the optimal allocation of society's resources at a given point in time?
Regression to the mean
What term describes the situation where a firm does exceedingly well due to good luck or exceedingly poorly due to bad luck, but returns to normal performance following?
Switching costs
What term refers to the costs incurred by buyers when they change to a different supplier?
Reputation costs
What term refers to the costs incurred by sellers when they deliver substandard, or defective products?
Early-mover advantages
What type of isolating mechanisms increase the economic power of a competitive advantage over time once a firm has acquired that advantage?
A firm does exceedingly well due to good luck or exceedingly poorly due to bad luck, but returns to normal performance following
Which of the following best describes regression to the mean??
Intellectual property
Which of the following is not a Legal Restriction?
Contracting to use another firm's proprietary process
Which of the following is the weakest an example of a "shock"?
The sunk cost effect
Which of the following terms best describes a phenomenon whereby a profit-maximizing firm sticks with its current technology or product concept even though the profit-maximizing decision for a firm starting from scratch would be to choose a different technology or product concept?
Market for ideas
Which of the following terms best describes a place in which a firm can sell its ideas for full value?
Strategic stretch
Which of the following terms best describes an idea, developed by Gary Hamel and C. K. Prahalad, which combines commitment to the firm's ambitions with the flexibility to change with circumstances?