QUESTION Which of the following of a firm is measured by the difference between the value of a product to an average consumer and the average unit cost of producing that product? A. Customer surplus B. Value creation C. Cost curve D. Value efficiency E. Customer reservation ANSWER B
Date: September 3rd, 2020
QUESTION The value of a product to an average consumer is V, the average price that the firm can charge a consumer for that product is P, and the average unit cost of producing that product is C. For this scenario, which of the following is true? A. The firm makes a profit so long […]
Date: September 3rd, 2020
QUESTION According to Michael Porter, what are the two basic strategies for creating value and attaining a competitive advantage in an industry? A. Differentiation and low-cost B. Value creation and generalization C. One-size-fits-all and zero-sum D. Comparison and standardization E. Profitability and strategic fit ANSWER A
Date: September 3rd, 2020
QUESTION According to Michael Porter, superior profitability goes to a firm that: A. creates similar products as their competitors. B. keeps the gap between value and cost of production smaller than the gap attained by competitors. C. drives down the cost structure of its business. D. has the highest cost structure in the industry. E. […]
Date: September 3rd, 2020
QUESTION Focusing primarily on increasing the attractiveness of a product is referred to as a: A. standardization strategy. B. differentiation strategy. C. target-identification strategy. D. low-cost strategy. E. profitability strategy. ANSWER B
Date: September 3rd, 2020
QUESTION Superior value creation relative to rivals requires that the firm: A. creates similar products as its competitors so that consumers do not have to pay a premium price. B. has the highest cost structure in the industry. C. creates the least valuable product in the eyes of consumers. D. ensures that the gap between […]
Date: September 3rd, 2020
QUESTION The efficiency frontier has a convex shape because of: A. a high-cost structure. B. diminishing returns. C. a significantly low product value. D. low production costs. E. high profit growth. ANSWER B
Date: September 3rd, 2020
QUESTION Which of the following shows all of the different positions that a firm can adopt with regard to value creation and low cost assuming that its internal operations are configured adequately to support a particular position? A. Demand-value model B. Experience curve C. Efficiency frontier D. Optimal output model E. Surplus curve ANSWER […]
Date: September 3rd, 2020
QUESTION A firm maximizes its profitability when it: A. creates products similar to the products of its competitors. B. minimizes the value provided by its products. C. picks a position on the efficiency frontier that is not viable. D. strips all the value out of its product offering. E. configures its internal operations to support […]
Date: September 3rd, 2020
QUESTION A firm’s profitability is maximized when it: A. creates products similar to the products of its competitors. B. strips all the value out of its product offering. C. ensures that it has the right organization structure in place to execute its strategy. D. picks a position on the efficiency frontier that is not viable. […]
Date: September 3rd, 2020
