Always Round Tire has been in the tire business since 1963. It has several plants with different levels of technology. Over the years, the company has worked with its employees to figure out how to produce a tire for less. This incumbent advantage the firm has over potential newcomers is the
A. result of scale economies.
B. effect of its learning curve.
C. impact of licenses and patents.
D. clear threat of using its excess capacity.
Answer: B
You might also like to view...
The use of bar codes, computerized price lists, and scanners in supermarkets is an example of
A) menu costs. B) implicit contracts. C) efficiency pricing. D) All of the above.
If the exchange rate between the Canadian dollar [C$] and the U.S. dollar [$] on January 6, 2010 is C$/$ = 1.03, then the exchange rate $/C$ will be:
a. 0.67. b. 0.79. c. 0.97. d. 1.97. e. 1.33.
The common currency area in Europe is called the:
A) common market. B) Eurozone. C) euromark. D) European Union.
If the U.S. imposes a tariff on autos to prevent the Korean imports from freely entering the U.S. market, which of the following is most likely to occur?
A. The price of autos to U.S. consumers would rise, and the demand for U.S. wheat exports would increase. B. The price of autos to U.S. consumers would fall, and the demand for U.S. wheat exports would decrease. C. The price of autos to U.S. consumers would fall, and the demand for U.S. wheat exports would increase. D. The price of autos to U.S. consumers would rise, and the demand for U.S. exports would decrease.