Strategic Management – Exam 4 & 5
Question 1 2..5 points
The link between volume of production and the cost of building manufacturing
operations is particularly important in industries characterized by:
Question options:
a) process innovations.
b) product manufacturing.
c) product innovation.
d) process manufacturing.
Question 2 2..5 points
Firms implementing cost-leadership strategies will generally adopt a:
Question options:
a) multi-divisional structure.
b) product-divisional structure.
c) functional organizational structure.
d) matrix structure.
Question 3 2..5 points
Learning-curve cost advantages are:
Question options:
a) restricted only to manufacturing firms.
b) restricted only to firms in services industries.
c) restricted only to firms in extraction industries.
, d) not restricted to manufacturing.
Question 4 2..5 points
If the potential responses of competing firms are likely to be very detrimental to the
costs advantages of cost leaders, firms pursuing a cost-leadership competitive strategy
should:
Question options:
a) drop their prices below competitors' prices to increase overall
economic performance through increased volumes of
profitable sales.
b) raise their prices above competitors, increasing overall
economic performance through higher margins.
c) focus on a specific niche market to avoid direct competition
with aggressive competitors.
d) set their prices equal to competitors' prices, sacrificing some
market share for increased profit margins.
Question 5 2..5 points
Which of the following is not a potential source of diseconomies of scale?
Question options:
a) Physical limits to efficient size
b) Worker demotivation
c) Distance to markets and suppliers
d) Learning-curve economies
Question 6 2..5 points
Which of the following statements about the learning curve and economies of scale is
accurate?
Question options:
a) Just as diseconomies of scale are presumed to exist if a firm
gets too large, there is a corresponding increase in costs in the
learning-curve model as the cumulative volume of production
Question 1 2..5 points
The link between volume of production and the cost of building manufacturing
operations is particularly important in industries characterized by:
Question options:
a) process innovations.
b) product manufacturing.
c) product innovation.
d) process manufacturing.
Question 2 2..5 points
Firms implementing cost-leadership strategies will generally adopt a:
Question options:
a) multi-divisional structure.
b) product-divisional structure.
c) functional organizational structure.
d) matrix structure.
Question 3 2..5 points
Learning-curve cost advantages are:
Question options:
a) restricted only to manufacturing firms.
b) restricted only to firms in services industries.
c) restricted only to firms in extraction industries.
, d) not restricted to manufacturing.
Question 4 2..5 points
If the potential responses of competing firms are likely to be very detrimental to the
costs advantages of cost leaders, firms pursuing a cost-leadership competitive strategy
should:
Question options:
a) drop their prices below competitors' prices to increase overall
economic performance through increased volumes of
profitable sales.
b) raise their prices above competitors, increasing overall
economic performance through higher margins.
c) focus on a specific niche market to avoid direct competition
with aggressive competitors.
d) set their prices equal to competitors' prices, sacrificing some
market share for increased profit margins.
Question 5 2..5 points
Which of the following is not a potential source of diseconomies of scale?
Question options:
a) Physical limits to efficient size
b) Worker demotivation
c) Distance to markets and suppliers
d) Learning-curve economies
Question 6 2..5 points
Which of the following statements about the learning curve and economies of scale is
accurate?
Question options:
a) Just as diseconomies of scale are presumed to exist if a firm
gets too large, there is a corresponding increase in costs in the
learning-curve model as the cumulative volume of production
