Reference no: EM132302389
1. Dell Computer attempts to collect information about customers before purchase and assemble customized product for the customer. This process tries to:
reduce transactions costs for both Dell and the customer.
reduce transactions costs for the customer only.
increase transactions costs for Dell so that it can reduce taxable profits.
increase transactions costs for customers so that IBM can sell send PCs also.
2. Finding a way to create and capture value is part of:
business strategy.
cost control systems.
management control, but not general management.
allowing the market to run a company's future plans.
3. If consumers find that there are substantial transactions costs to purchasing a product, then:
overall consumer demand is greater at each price.
overall consumer demand is the same at each price.
overall consumer demand is less at each price.
equilibrium price and quantity both fall.
4. In a competitive market, the firm has a difficult time capturing value due to the large number of rivals. But it can be successful at capturing value if the:
firm's cost curves are higher than rivals.
firm's superior productivity is based on value of the whole organization.
firm's superior productivity is based on selected components of superiority within the firm.
demand for the firm's product is inelastic.
5. Manufacturers of printers and computers set prices independently. This means that they:
do not consider the positive effect that their lower prices have on the other's profit.
do not consider the negative effect that their lower prices have on the other's profit.
do not consider the positive effect that their higher prices have on the other's profit.
do not consider the negative effect that their higher prices have on the other's profit.
6. Profits will be:
high regardless of the degree of rivalry.
high when the degree of rivalry is high.
low when the degree of rivalry is low.
low when the degree of rivalry is high.
7. Putting together two goods – shaving cream and razors – to increase value is using the power of:
complementary goods.
substitute goods.
unrelated goods.
technologically advanced goods.
8. Ready-to-eat products like Kraft Lunchables:
decrease producer transactions costs.
increase producer transactions costs.
decrease consumer transactions costs.
increase consumer transactions costs.
9. Related diversification occurs when:
a business serves itself first before serving others.
a business serves others first before serving itself.
a business serves itself and allows other to serve it.
a business serves itself and many other common businesses.
10. Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of:
increased consumer transactions cost.
increased producer transactions cost.
reduced consumer transactions cost.
reduced producer transactions cost.
11. Successful invention and innovation in the marketplace:
can create value and is easy to capture.
cannot create value and is difficult to capture.
can create value but is often difficult to capture.
is not important to most company's strategy.
12. The learning effect is one form of:
diversification.
creating value through increasing transactions costs.
creating value through stabilizing transactions costs.
creating value through decreasing transactions costs.