The Existence of High Exit Barriers Such as Ownership of Specialized

question 57

Multiple Choice

The existence of high exit barriers such as ownership of specialized assets (e.g., large aircraft) in the airline industry indicates that

• A) customers are relatively weak because of the high switching costs created by frequent flyer programs.
• B) the industry is moving toward differentiation of services.
• C) the competitive rivalry in the industry is severe.
• D) the economic segment of the external environment has shifted, but airline strategies have not changed.

Analyze the factors affecting infant mortality rates in industrialized nations.

Understand the role of technological change in society and its impact on social change.

Understand the characteristics of perfectly competitive markets.

Identify the relationship between market demand and individual firm's profits in a perfectly competitive market.

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Definitions:

Upward Communication Technique

Strategies or methods used for conveying information from lower levels of an organization to higher levels, often to provide feedback or report on progress.

Retiring Experts

Experienced professionals who are leaving their careers or positions, often leading to a loss of specialized knowledge within an organization.

Cell Phones

Portable electronic devices that allow for telecommunication over long distances without the need for wired connections.

Videoconference

A technology-enabled meeting in which participants in different locations interact via video and audio transmissions, allowing for real-time communication.