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A firm that is at Minimum Efficient Scale ...
must benefit from high capacity utilization
is producing the minimum it takes to be efficient in any given period of time
has the production scale required to meet market demand in a given area
has the production scale required to minimize average unit costs of production
All of the above
None of the above correct answers has the production scale required to minimize average unit
costs of production
Which factors can influence willingness to pay?
The size of shape of a product
Childhood memories
Relationships with people working at the firm
Brand
All of the above
None of the above correct answers All of the above
Which of the following is equal to the total value created by a company?
Revenue minus input cost
Willingness-to-pay minus willingness-to-supply
Price minus total cost
None of the above correct answers Willingness-to-pay minus willingness-to-supply
, In the figure, which firm would you rather be if all parts of the value stick were fixed?
The Firm with a bigger gap between WTP - Price
The Firm with a bigger gap between WTP - TC correct answers The Firm with a bigger gap
between WTP - Price
Which firm would you rather be if prices were not fixed?
The Firm with a bigger gap between WTP - Price
The Firm with a bigger gap between WTP - TC correct answers The Firm with a bigger gap
between WTP - TC
Which of the following factors would be most likely to change the threat of substitutes in an
industry?
Demographic changes that affect consumers' preferences for various products
A merger between suppliers
An increase in barrier to entry
Technological changes that lower minimum efficient scale correct answers Demographic
changes that affect consumers' preferences for various products
A value chain analysis consists of systematically analyzing a firm's key activities that for analysis
purposes are categorized into two groups:
primary activities and support activities.
products and service activities.
customers and suppliers.
profits and losses. correct answers primary activities and support activities.
A firm that is at Minimum Efficient Scale ...
must benefit from high capacity utilization
is producing the minimum it takes to be efficient in any given period of time
has the production scale required to meet market demand in a given area
has the production scale required to minimize average unit costs of production
All of the above
None of the above correct answers has the production scale required to minimize average unit
costs of production
Which factors can influence willingness to pay?
The size of shape of a product
Childhood memories
Relationships with people working at the firm
Brand
All of the above
None of the above correct answers All of the above
Which of the following is equal to the total value created by a company?
Revenue minus input cost
Willingness-to-pay minus willingness-to-supply
Price minus total cost
None of the above correct answers Willingness-to-pay minus willingness-to-supply
, In the figure, which firm would you rather be if all parts of the value stick were fixed?
The Firm with a bigger gap between WTP - Price
The Firm with a bigger gap between WTP - TC correct answers The Firm with a bigger gap
between WTP - Price
Which firm would you rather be if prices were not fixed?
The Firm with a bigger gap between WTP - Price
The Firm with a bigger gap between WTP - TC correct answers The Firm with a bigger gap
between WTP - TC
Which of the following factors would be most likely to change the threat of substitutes in an
industry?
Demographic changes that affect consumers' preferences for various products
A merger between suppliers
An increase in barrier to entry
Technological changes that lower minimum efficient scale correct answers Demographic
changes that affect consumers' preferences for various products
A value chain analysis consists of systematically analyzing a firm's key activities that for analysis
purposes are categorized into two groups:
primary activities and support activities.
products and service activities.
customers and suppliers.
profits and losses. correct answers primary activities and support activities.
