In Carrying Out a Competitive Positioning Analysis of an Industry

question 35

Multiple Choice

In carrying out a competitive positioning analysis of an industry it is important to:

• A)find groups of competitors that use the same approach
• B)find groups of competitors that use different approaches
• C)use uncorrelated axes
• D)use correlated axes

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Definitions:

Efficiency Losses

The reduction in economic welfare resulting from distortions in resource allocation or market behavior.

Externalities

Costs or benefits that result from an activity or transaction and affect others who did not choose to incur that cost or benefit.

Demand Elasticities

Measures the responsiveness of demand for a good or service to changes in its price or other factors.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare.