Multiple choice questions:

1. From an industry analysis standpoint, it is best when customers are

a) as few as possible and large, because they can place larger orders and maintaining relationships is easier

b) small and as many as possible, because they will have less leverage

c) customers are not a component of industry analysis

d) none of the above

Which of the following is least likely to be an effective isolating mechanism to sustain competitive advantage?

a) Learning and experience

b) Path dependence

c) Causal ambiguity

d) Social complexity

Suppose A is the only aircraft manufacturer in the aviation industry. How much should A charge for its aircraft to maximize its profits?

a) Equal to willing-to-pay

b) A little bit higher than willing-to-pay

c) A little bit lower than willing-to-pay

d) Equal to cost