2. Decrease in the per unit cost with an increase in the number of units produced is known as

a) specialization

b) production advantage

c) economies of scale

d) economies of scope

4. In the game-theoretic framework seen in the Airbus-Boeing case, what was the Nash equilibrium concerning whether to build the VLCT?

a) Airbus and Boeing both build the VLCT

b) Airbus builds the VLCT, and Boeing does not

c) Boeing builds the VLCT, and Airbus does not

d) Neither Boeing nor Airbus build the VLCT

6. Walmart decided to enter groceries in spite of these having lower profit margins because:

a) their cost leadership strategy enabled them to sell groceries more efficiently than supermarket chains

b) they sought to grow larger at the expense of competitors

c) they were looking to leverage economies of scope

d) none of the above

8. The Cola Wars between Coke and Pepsi were fought predominantly by:

a) both firms aggressively leveraging economies of scale to cut the cost to pursue greater margins

b) the systematic elimination of smaller competitors to turn the market into an oligopoly

c) securing as many exclusive contracts with local bottlers as possible

d) competing marketing and advertising campaigns