Question
1. Samsung sells its 16in monitors to Apple for 85 per screen. Its estimated cost is 49 and Apple is willing to pay up to
1. Samsung sells its 16in monitors to Apple for 85 per screen. Its estimated cost is 49 and Apple is willing to pay up to 99. The value creation (VC) and consumer surplus (CS) in this case are equal to:
VC=50 , CS=14.
Impossible to say.
VC=36 , CS=14.
VC=99 , CS=36.
2. Which one of the following is not an element of the five forces framework?
Internal rivalry.
Entry.
Supplier power.
Exit.
3. The market for social-media-monitoring software exhibits very strong network externalities: The firm with the highest market share doubles its market share every year. It took Rogue Inc 20 years to obtain 100% market share and become a monopoly. How may years did it take for Rogue Inc to obtain 25% market share?
5.
18.
15.
7.
4. In order to increase the creativity of its staff, Google invested in a highly unique headquarters building, brimming with indoor leisure activities and places for staff to socialize. What type of asset-specific investment is this?
Site-specific investment.
All other options are correct.
Physical asset investment.
Human asset investment.
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