1.

In which of the following is a firm LEAST likely to appropriate the gains from its own innovation?

A. The innovation is patentable under current U.S. patent law

B. Imitation by rivals is relatively difficult

C. The innovation is subject to low network externalities

D. Diffusion to customers of new products deriving from the innovation is quck

2.

In an uncertain environment created by the digital transformation or the current pandemic, which of the following approaches is most likely to help a company create a sustainable competitive advantage?

A. Tightly integrating their value chain

B. Identifying an analogy from another industry and applying it to the current industry

C. Vertically integrating manufacturing to decrease flexibility in responding to demand

D. Building up barriers to imitation from competition

3. Which of the following is likely to lead to stronger bargaining power for buyers?

A. Buyers can't backward integrate

B. Buyers face high switching costs

C. Buyers are unaware of the prices fellow buyers are paying

D. Buyers are concentrated

4. Which of the following reducesa firm's flexibility to meet changing market demand?

A. Using commodity products as inputs for production

B. Typically operating their distribution center at half capacity

C. Outsourcing the activity in their value chain to a firm with a standardized production schedule

D. Using a temporary work force