1) Why do firms in highly competitive industries bother creating product extension or product/service bundling (complements)?

A. Decreases barriers to entry for the industry

B. Keeps the power to set prices with the manufacturer

C. Customers are loyal

D. Suppliers want them

2) Technology does which of the following .......

A. Overcome barriers to entry

B. Create substitutes

C. Makes rivalry more intense

D. Changes how firms compete

E. Two of the above

F. All of the above

G. None of the above

3) Which decision is an example of a consumer facing switching costs?

A. Vijay must decide between Joe's soy ketchup vs. HJ Heinz tomato ketchup

B. Vijay decides he wants a wrap instead

C. Vijay goes without a condiment

D. Vijay must decide between ketchup, mustard, relish or other condiments