1.Phoe has noticed that by increase in every 10,000 produced units, the cost per unit decreases about 50 cents. However, when the production goes above 10,000 units, the cost per unit decreases only 45 cents. What does this situation refer to?

		Learning effects
		Mass customization
		Decreased response time
		Economies of scale
		Diseconomies of scale

2.What differentiates a mature from a declining industry?

		Number of substitute products and service
		Level of technological sophistication
		Number of market segments
		Demand growth rate
		Degree of government regulations

3.Which item best corresponds to the integration of cost-leadership and differentiation?

		It is possible but difficult to obtain.
		It is only possible through industry fragmentation.
		It is impossible to achieve.
		It is a popular strategy among young businesses.
		It is actually a common and easy-to-execute strategy in the business world.

4.A consolidated industry structure:

		consists of a small number of companies with the power to determine the industry prices.
		is characterized by low-entry barriers and commodity-type products.
		is characterized to attract the early adopter customer group.
		is attractive for new potential entrants.
		consists of several small companies, none of which is positioned to determine the industry prices.

5.Jack oversees the processes of the research and development department of his company. He is responsible for all the activities and tasks undertaken by the department. In the context of strategic management, Jack is a:

		CEO
		corporate-level manager
		managing director
		business development manager
		functional manager