1. In the context of the SWOT matrix, which of the following best exemplifies a firm's internal strength?

A. increase in a firm's customer loyalty

B. growth in the size of the market in which a firm operates

C. rise in the income of the demographic segment to which a firm caters

D. loss of a competitor's reputatIon

2. The resource-based view of a firm assumes that the

A. resources of firms are highly scarce and hence the government interferes to ensure equal distribution.

B. resources of firms are highly exhaustible and hence they cannot contribute to their competitive advantage.

C. resource bundles of firms competing in the same industry are unique to some extent and thus differ from one another.

D. resource bundles of firms competing in the same industry tend to be highly mobile, moving easily from firm to firm.

3. Which of the following statements accurately brings out the difference between economies of scale and economies of scope?

A. Economies of scale refer to the decreases in per-unit cost with decreases in output, whereas economies of scope refer to the increases in per-unit cost with increases in output.

B. Economies of scale result in decreasing returns to scale, and economies of scope result in constant returns to scale.

C. Economies of scope are the savings that come from producing two or more outputs from the same resources, whereas economies of scale are decreases in per-unit cost with increases in output.

D. Economies of scope are realized when a firm operates at the minimum efficient scale, whereas economies of scale are realized when the firm operates beyond the minimum efficient scale.