Question 1

If a firm enjoys lower costs due to a complex labor-intensive process,which of the following statements would then be true?

Accepted Answer

The answer of If a firm enjoys lower costs due...

Question 2

In the BCG Growth Share Matrix,what is a cash cow?

Accepted Answer

A cash cow is a product or business unit that has a high relative market share in a stable or declining market. These products generate significant profits and cash flow for the company, and require little investment to maintain. Therefore, the best choice is B.

Question 3

Suppose the cost of advertising in a local newspaper is $5 per thousand papers.If the circulation for the paper is 1.5 million and the cost of preparing an ad for a company is $2500,what is the advertising cost per potential customer?

Accepted Answer

The answer of Suppose the cost of advertising in a...

Question 4

Why is firm specific learning better in general for an organization?

Accepted Answer

Firm-specific learning refers to knowledge and skills that are specific to a particular organization and the work that is performed there. This type of learning is beneficial for organizations because it ensures that employees' knowledge is tied to their current employment, meaning that they are less likely to leave for another job. This can help reduce turnover and the costs associated with recruiting and training new employees. In addition, firm-specific learning can help enhance the quality of work performed by employees, as they can use their knowledge and skills to perform tasks more efficiently and effectively. Therefore, option D is the best choice.

Question 5

By using instrumental variables,what was Ramanarayanan able to suggest regarding the learning curve?

Accepted Answer

Ramanarayanan used instrumental variables to examine the impact of surgeon experience (measured by the number of surgeries performed) on patient outcomes. The instrumental variable used was the retirement of a colleague, which was assumed to randomly affect the number of patients a surgeon would treat. The results suggested that surgeons who treated more patients after the retirement of a colleague experienced better outcomes, indicating that the learning curve is important and that experience improves surgical outcomes. Therefore, choice B is correct.

Quiz 2: Economies of Scale and Scope

If a firm enjoys lower costs due to a complex labor-intensive process,which of the following statements would then be true?

In the BCG Growth Share Matrix,what is a cash cow?

Suppose the cost of advertising in a local newspaper is $5 per thousand papers.If the circulation for the paper is 1.5 million and the cost of preparing an ad for a company is $2500,what is the advertising cost per potential customer?

Why is firm specific learning better in general for an organization?

By using instrumental variables,what was Ramanarayanan able to suggest regarding the learning curve?