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model 3

The document is a quiz from the Business Administration School at Ahram Canadian University, focusing on strategic management concepts. It includes multiple-choice questions and true/false statements related to industry attributes, collusion signals, vertical integration, and opportunism. Students are required to choose correct answers and correct any false statements provided.

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24 views

model 3

The document is a quiz from the Business Administration School at Ahram Canadian University, focusing on strategic management concepts. It includes multiple-choice questions and true/false statements related to industry attributes, collusion signals, vertical integration, and opportunism. Students are required to choose correct answers and correct any false statements provided.

Uploaded by

hm4345689
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Ahram Canadian University

Business Administration School

University/Academy: Ahram Canadian University


Faculty/Institute: Business Administration
Quiz: model 3 Strategic Management ll

 Choose the correct answer with the following questions: (5 marks)

1) Which of the following is NOT an industry attribute that facilitates the development
and maintenance of tacit collusion?
A) Small number of firms
B) Product homogeneity
C) Cost homogeneity
D) Exit barriers

2) In general, firms can send one of two signals to collusion partners who may cheat on
their cooperative agreements: a ________ signal or a ________ signal.
A) explicit; implicit
B) explicit; tacit
C) visual; verbal
D) tough; soft

3) Omega, Inc. signals that if parties cheat on collusive agreements, it will decrease prices
more or increase output more than would have otherwise been the case. Omega, Inc. is
sending a(n) ________ signal.
A) explicit
B) tacit
C) tough
D) soft

4) Which of the explanations of vertical integration is the oldest and has received the
greatest empirical support?
A) opportunism-based
B) flexibility-based
C) firm capabilities-based
D) alliance-based

5) ________ exists when a firm is unfairly exploited in an exchange.


A) Competitive advantage
B) Business level strategy
C) Opportunism
D) Corporate level strategy

School of Business Administration – Ahram Canadian University Page 1 of 2


Ahram Canadian University
Business Administration School

 Stat whether the following statements are true or false and correct the false
statements. (5 marks)
1) Transaction-specific investments make parties to an exchange vulnerable to
opportunism, and vertical integration solves this vulnerability problem.

TRUE

2) One of the biggest uncertainties in providing customer service through call centers is the
question of whether the people staffing the phones actually help a firm's customers.

True

3) Cournot examined the performance consequences if colluding firms cheat by adjusting


the quantity of their output and let market forces determine prices.

true

4) In examining cheating via collusion, where Bertrand focused on quantity produced,


Cournot focused on prices.

False (Bertrand focused on prices, while Cournot focused on quantity produced.)

5) If one of a firm's exchange partners behaves opportunistically, this reduces the economic
value of the firm

true

School of Business Administration – Ahram Canadian University Page 2 of 2

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