MN7402: Business Economics Seminar 4
Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: daixieit
MN7402: Business Economics
Seminar 4 (Lecture 6)
Part A (Comprehension)
1. Which of the following is NOT a source of profit erosion?
(a) Entry of new firms in the market.
(b) Price competition.
(c) Copyrights.
(d) Imitation.
2. Barriers to entry include:
(a) Product differentiation.
(b) Price undercutting.
(c) Control of resources.
(d) Customer satisfaction.
3. A firm’s expansion of its production capacity is:
(a) A barrier to entry.
(b) An impediment to imitation.
(c) Both.
(d) None of the above.
4. Google’s organisational culture is an example of:
(a) A barrier to entry.
(b) An impediment to imitation.
(c) Legal restrictions.
(d) Network externalities.
Part B (Problems and Discussion)
5. Briefly explain what are the main sources of profit erosion and their relation to the five forces.
6. Briefly discuss the similarities and differences between barriers to entry and im- pediments to imitation.
2023-01-12