13. The primary activities in Porter's generic value chain include ... A. research and development B. marketing C. accounting and finance D. human resources management 14. By selling a laptop at $1,000 for which consumers are willing to pay up to $1,200, a consumer electronics firm makes a profit of $400 per unit. The economic value created is ... A. $200 B. $400 C. $600 D. $800 15. Producers of electric fragrance diffusers sell the electric outer device at a loss. They make a profit on the perfume refills that must be replaced regularly. This business model is known as A. razor-and-(razor)-blades B. subscription-based C. freemium D. pay-as-you-go 16. The balanced scorecard ... A. is a one-dimensional metric of measuring competitive advantages of a firm. B. is a very traditional approach to measure firm performance. C. is based almost entirely on external performance dimensions. D. aims to provide a holistic perspective on firm performance. 17. Organic Eats targets health-conscious diners and charges premium prices for its all-organic, vegan meals. Since very few restaurants offer similar services, Organic Eats is following a A. product diversification strategy. B. liquidation strategy. C. mass market strategy. D. focused differentiation strategy. 18. PureRinse initially made a body wash but now also produces shampoos and sunscreens. Since its products rely on similar resources and technology, the company has reduced its cost structure while widening its product portfolio. PureRinse is applying ... A. mass customization B. economies of scope C. a learning-curve effect D. a network effect 19. A blue ocean strategy is difficult to implement primarily because it A. combines two very similar strategies - differentiation and low cost. B. must reconcile two very different strategies-differentiation and low cost. C. combines two very similar strategies-differentiation and strategic trade-offs. D. must reconcile two very different strategies-differentiation and strategic trade-offs