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MCQs 8

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Asif Mahmood
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33 views2 pages

MCQs 8

Uploaded by

Asif Mahmood
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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36.

The highest amount a firm can charge for its products is


most directly affected by

a. expected retaliation from competitors.

b. the cost of substitute products.

c. variable costs of production.

d. customers’ high switching costs.

Ans. b

37. All of the following are forces that create high rivalry
within an industry EXCEPT

a. numerous or equally balanced competitors.

b. high fixed costs.

c. fast industry growth.

d. high storage costs.

Ans. c

38. According to the five factors model, an attractive


industry would have all of the following characteristics
EXCEPT:

a. low barriers to entry.

b. suppliers with low bargaining power.

c. a moderate degree of rivalry among competitors.

d. few good product substitutes.

Ans. a
39. Internal analysis enables a firm to determine what the
firm

a. can do.

b. should do.

c. will do.

d. might do.

Ans. a

40. An external analysis enables a firm to determine what


the firm

a. can do.

b. should do.

c. will do.

d. might do.

Ans. d

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