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.

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Definitions:

Manufacturing Defect

A flaw in the production of a product that causes it to deviate from its intended design or specifications.

Design Defect

A flaw in the intentional design of a product that results in it being unsafe for its intended or reasonably foreseeable use.

Inadequate Warning

Refers to insufficient or unclear information provided about the potential risks or dangers associated with a product or activity.

Statute Of Repose

Basically, a statute of limitations that is not dependent on the happening of a cause of action. Statutes of repose generally begin to run at an earlier date and run for a longer period of time than statutes of limitations.