Managing Competitive Dynamics Quiz-8

Cross-market retaliation:

• seldom occurs among rivals.

• occurs in markets where rivals have little overlap.

• is more common in situations with greater market commonality.

• often leads to tacit collusion.

Which Act or case created the Federal Trade Commission to regulate the behavior of firms?

• Sherman Act of 1890

• Clayton Act of 1914

• Standard Oil Case (1911)

• Aluminum Company of America Case (1945)

A higher end car company also operates a low-cost subsidiary to combat low-cost rivals. This is an example of what strategy?

• Stealth attack

• Collusion

• Dumping

• Fighter brand

In essence, strategy is interaction in which:

• performance is not the goal.

• action and reactions lead to competitive advantage.

• mutual forbearance is the goal.

• competitive performance is the result of collusion.

In the framework for competitor analysis between two rivals, which of the following would have the highest intensity of rivalry?

• Low resource similarity and high market commonality

• High resource similarity and high market commonality

• Low resource similarity and low market commonality

• High resource similarity and low market commonality

A mechanical approach to determining whether antitrust activities are taking place:

• has been abandoned.

• is widely used in all developed economies.

• is used in emerging economies but not in developed ones.

• provide a detailed assessment of collusion.

Cartels:

• involve collusion.

• are seldom outlawed.

• are common across all industries.

• bypass the "prisoners' dilemma" for participants.

Firm A indirectly coordinates a limit on price increases on its products that compete with Firm B’s products. Firm A is engaging in:

• tacit collusion.

• explicit collusion.

• mutual forbearance.

• a prisoner’s dilemma.

When considering strategic actions for global competition, the first step for a strategist is to:

• thoroughly understand the nature of your industry.

• strengthen the resources and capabilities that help you compete more effectively.

• understand the rules of the game for domestic and international competition.

• determine whether collusion or competition is the best course of action.

A firm’s ability to attack in multiple markets is a(n):

• industry-based consideration.

• resource-based consideration.

• institution-based consideration.

• sign of collusion.