All of the Following Are Assumptions of the Industrial Organization

question 71

Multiple Choice

All of the following are assumptions of the industrial organization (I/O) model EXCEPT:

• A) organizational decision makers are assumed to be rational and committed to acting in the firm's best interests.
• B) resources to implement strategies are firm-specific and attached to firms over the long-term.
• C) the external environment is assumed to impose pressures and constraints that determine the strategies that would result in above-average returns.
• D) most firms competing within an industry or within a segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Operant Conditioning

Operant conditioning is a learning process whereby behavior is strengthened or weakened by reinforcement or punishment.

Classical Conditioning

A training approach characterized by making associations between a stimulus in the environment and one that occurs naturally, causing a conditioned behavior.

Social Setting

The physical and social context in which people live or in which something happens or develops.