791. Product differentiation refers to the:
A. ability of the buyers of a product to negotiate a lower price.
B. response of incumbent firms to new entrants.
C. belief by customers that a product is unique.
D. fact that as more of a product is produced the cheaper it becomes per unit.

792. Which of the following is NOT an entry barrier to an industry?
A. expected competitor retaliation
B. economies of scale
C. customer product loyalty
D. bargaining power of suppliers

793. Switching costs refer to the:
A. cost to a producer to exchange equipment in a facility when new technologies emerge.
B. cost of changing the firm’s strategic group.
C. one-time costs suppliers incur when selling to a different customer.
D. one-time costs customers incur when buying from a different supplier.

794. New entrants to an industry are more likely when (i.e., entry barriers are low when…)
A. it is difficult to gain access to distribution channels.
B. economies of scale in the industry are high.
C. product differentiation in the industry is low.
D. capital requirements in the industry are high.

795. Suppliers are powerful when:
A. satisfactory substitutes are available.
B. they sell a commodity product.
C. they offer a credible threat of forward integration.
D. they are in a highly fragmented industry.

796. 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.

797. 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.

798. 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.

799. Internal analysis enables a firm to determine what the firm
A. can do.
B. should do.
C. will do.
D. might do.

800. An external analysis enables a firm to determine what the firm
A. can do.
B. should do.
C. will do.
D. might do.

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