Option 3:  The diagram below has an incumbent firm’s LRAC curve as well as the market demand. This incumbent firm currently produces an output of 300 and charges a price of 20. (i) What is the minimum output level a potential entrant would need to produce at if it feared that the incumbent would price compete? (ii) Explain how economies of scale could be an important deterrent to entry even though there are not economies of scale over all ranges of output.

PART 2 OPTION 2:

Part 2: Answer 2 of the following 3 questions. If you answer more than 2, only the first two will be graded.    

What innovation was made possible by the development of steel for a skeletal structure and the elevator?

A keystone is the stone at the central, highest point fo a round arch, which holds the rest of the arch in place. 

Which of the following buildings used cast iron and glass to create large and flexible interior spaces spanning 19 acres?

Robert Longo’s Corporate Wars: Walls of Influence is an example of __________, a sculpture where a significant portion of the subject emerges from the background.

What was the drawback to the camera obscura?

Willem de Kooning’s Woman and Bicycle is controversial for its ________.

Answer either question 1 OR question 2. Specifically recall/use the information from the 2 assigned readings and Apple’s Value Statement which you were assigned to read before taking this exam. Question 1- In which stage of Organizational Learning is Apple relative to the mineral cobalt (remember stages are – in order from lowest to highest: defensive, compliance, managerial, strategic, civil) Explain 3 reasons which are specific to Apple to support/defend the stage that you listed (you may choose only 1 stage)   Question 2 – In which stage of Issue Maturity is the cobalt labor issue (remember the stages are – from lowest to highest: latent, emerging, consolidating, institutionalized) Explain 3 reasons which are specific to the cobalt mining industry to support/defend the stage you listed (you may choose only 1 stage)