4. All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure.

True

False

5.

Competitive advantage is based on:

		distinctive competencies.
		the Icarus paradox.
		higher cost structure.
		prior strategic commitments.
		barriers to change in a company

6.

The argument states that companies find it hard to change their strategies and structures to adapt to changing competitive conditions.

		inertia.
		imitation.
		barriers to mobility.
		lack of resources.
		lack of capabilities.