Questions:
Question 1
Which of the following is least likely a characteristic of profit persistence in an industry?
A. Low profit firms today should remain low-profit firms in the future
B. Barriers to imitation exist
C. Economic profits should quickly converge to zero
D. Entry barriers exist
E. Firms earning above-average profits today should continue to do so in the future
Question 2
What term best describes the characteristic of a process if past circumstances could exclude certain evolutions in the future?
A. Dynamic efficiency
B. Dynamic capabilities
C. Evolutionary economics
D. Correlated research strategies
E. Path dependence
Question 3
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?
A. The sunk cost effect
B. Strategic intent
C. The replacement effect
D. Strategic stretch
E. Hypercompetition
Question 4
What term best describes clusters of activities that a firm does especially well in comparison with other firms?
A. Competitive advantage
B. Capabilities
C. Strategic firm assets
D. Threats to sustainability
E. Resources
Question 5
Which of the following terms describes a nation's position with regard to the elements (e.g. human resources, infrastructure) of production that are necessary to compete in a particular industry?
A. Related supplier or support industries
B. Supply conditions
C. Factor conditions
D. Strategy, structure, and rivalry
E. Demand conditions
Question 6
What term best describes assets that are more valuable when used together than when separated?
A. Isolating
B. Imperfectly mobile
C. Value-creating
D. Scarce
E. Cospecialized
Question 7
What product characteristic refers to the situation where consumers place higher value on a product if other consumers also use it?
A. Value creation effect
B. Complementary effect
C. Network effect
D. Product linkage
E. Product externality
Question 8
Size, growth, and character of home demand for a firm's product are examples of what?
A. Demand conditions
B. Strategy, structure, and rivalry
C. Factor conditions
D. Supply conditions
E. Related supplier or support industries
Question 9
What term best characterizes the battle between firms to innovate first?
Market for new ideas
New product competition
R&D race
Innovation competition
Patent race
Question 10
What term best describes when quiet periods in markets are punctuated by fundamental "shocks" or "discontinuities" that destroy old sources of advantage and replace them with new ones?
A. Disruptive technologies
B. Innovation
C. Entrepreneurship
D. Creative destruction
E. Market for ideas