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Ex.20. Read the text and decide whether the following statements are true or false. Correct the false statements.Date: 2015-10-07; view: 580. Ex.19. Read the text. Choose the best sentence A-J to fill each of the gaps 1-10. Do not use any of them more than once. 0 Rather, firms strive for a competitive advantage over their rivals. A Sears set high quality standards and required suppliers to meet its demands for product specifications and price. B Litton was successful in the 1960's with its contracts to build Navy ships. C The industry may become crowded if its growth rate slows and the market becomes saturated D raising or lowering prices to gain a temporary advantage. E The Concentration Ratio (CR) is one such measure. F a stable market will not have more than three significant competitors, and the largest competitor will have no more than four times the market share of the smallest. G At other times, local hospitals are highly cooperative with one another on issues such as community disaster planning. H This discipline may result from the industry's history of competition I When a customer can freely switch from one product to another there is a greater struggle to capture customers. J the firm must produce near capacity to attain the lowest unit costs. 1. Firms strive for a competitive advantage over their rivals. 2. The intensity of rivalry among firms is the same across industries. 3. The CR indicates the percent of market share held by the four smallest firms 4. A high concentration ratio indicates that a high concentration of market share is held by the largest firms - the industry is concentrated. 5. A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share. 6. If rivalry among firms in an industry is high, the industry is considered to be disciplined. 7. When a rival acts in a way that elicits a counter-response by other firms, rivalry intensifies. 8. The intensity of rivalry commonly is referred to as being cutthroat, intense, moderate, or weak, based on the firms' aggressiveness in attempting to gain an advantage. 9. The rivalry intensifies if the firms have different market share, leading to a struggle for market leadership. 10. In a growing market, firms are able to improve revenues simply because of the expanding market.
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