At a certain output level, the cost per unit incurred by a firm to manufacture a product was $80. Once the cumulative output doubled, the cost per unit reduced to $72. This effect of the greater output amount on the lower cost per unit may be attributed to all of the following factors except:

1. The firm is able to spread marketing costs over more units of production.

2. The firm uses a different business model.

3. Employees gain greater learning and experience at production.

4. The firm is able to spread rental costs over more units of production.

Which of the following refers to the process outlining the full set of commitments required to achieve Above Average Returns?

1. Resource Based View

2. External Analysis Process

3. Strategic Management Process

4. Structure Conduct Process

Lynn works as a strategic consultant for an airline company. Suppose that upon identifying the key characteristics of flights that customers value, Lynn found that a large proportion of customers did not care about whether they have pre-assigned seats. Thus, she recommended eliminating this feature completely to save some operating costs while augmenting other features that the customers desire. Which of the following best describes Lynn's strategic thinking?

1. PESTEL analysis

2. Blue ocean strategy

3. Cost leadership strategy

4. Competitor response profile

Formulating a good strategy may entail understanding all of the following questions except:

1. How do we acquire resources?

1. How could we converge with competitors?

2. How do we sustain profits?

3. In which market do we compete?

Which of the following best describe the scenario in which a firm's resources are valuable, rare, costly to imitate, and the firm is organized to capture the value created by these resources?

1. Competitive Parity

2. Sustainable Advantage

3. Temporary Advantage

4. Competitive Disadvantage