The manufacturer of a high priced car emphasizes the prestige, performance, and safety of the vehicle. The strategy pursued by the manufacturer can be best characterized as:
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1 .If the demand for a normal good is inelastic, then the sales price of the product would increase following a(n):
A Increase in the supply of the product. B Decrease in the price of a substitute good. C Increase in the number of suppliers of the product. D Decrease in the supply of the product.
2 .Having identified their mission, overall strategy, and critical success factors, organizations often review the internal and external factors that will contribute to their success. This analysis is often referred to as:
A Brainstorming. B TOC evaluation. C Balanced scorecard review. D SWOT analysis.
3 .Under which of the following conditions is the supplier most able to influence or control buyers?
A When the supplier's products are not differentiated. B When the purchasing industry is an important customer to the supplying industry. C When the supplier does not face the threat of substitute products. D When the industry is controlled by a large number of companies.
4 .In the long run, a firm may experience increasing returns due to:
A Law of diminishing returns. B Comparative advantage. C Economies of scale. D The principle of substitution.
5 .An increase in the demand and the supply fora product will cause which of the following? I. The equilibrium quantity to increase. II. The equilibrium quantity to remain unchanged. III. The equilibrium price to remain unchanged. IV. The equilibrium quantity to decrease.
A I and III only. B II and III only. C II only. D I only.
7 .Falser Co. increases all of its input factors by 100 percent, resulting in increased output of 90 percent. Which of the following statements identifies the effect of this change?
A Marginal returns rise. B Marginal costs decrease. C Returns to scale decrease. D Returns to scale increase.
8 .The benefits of a just-in-time system for raw materials usually include:
A Increase in the number of suppliers, thereby ensuring competitive bidding. B Maximization of the standard delivery quantity, thereby lessening the paperwork for each delivery. C Elimination of nonvalue adding operations. D Decrease in the number of deliveries required to maintain production.
9 .All of the following would generally be included in a cost of quality report, except:
A Design engineering. B Supplier evaluations. C Lost contribution margin. D Warranty claims.
10 .Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):
A Internal failure cost. B Appraisal cost. C Prevention cost. D External failure cost.
