What empirical method generally is used to measure the d

05 Jun What empirical method generally is used to measure the d

Question
Question 1

3.5 out of 3.5 points

Which of the following is not a characteristic of substitute products X and Y?

Answers:

A.

They have the same or similar occasions for use

B.

A price increase of X while keeping the Y’s price constant leads to a drop in purchases of X and an increase in purchases of Y

C.

Customers are indifferent between X and Y

D.

They are sold in the same geographic market

E.

They have the same or similar product performance characteristics

Question 2

3.5 out of 3.5 points

In what type of market do the actions of individual firms materially affect the overall market?

Answers:

A.

Monopolistically competitive

B.

Oligopoly

C.

Monopoly

D.

Diversified

E.

Perfectly competitive

Question 3

3.5 out of 3.5 points

How much revenue a firm brings in by improving the quality of a product such that more consumers want to buy it depends on which two factors?

Answers:

A.

The decrease in demand caused by the increase in quality and the incremental loss on each additional unit sold

B.

The decrease in demand caused by the increase in quality and the incremental profit earned on each additional unit sold

C.

The quality of changes to the original product and the decrease in demand cause by the changes in quality

D.

The increase in demand caused by the increase in quality and the incremental loss on each additional unit sold

E.

The increase in demand caused by the increase in quality and the incremental profit earned on each additional unit sold

Question 4

3.5 out of 3.5 points

In what type of market structure do sellers set identical prices and are prices generally driven down to marginal costs?

Answers:

A.

Monopoly

B.

Diversified

C.

Monopolistic competition

D.

Perfect competition

E.

Oligopoly

Question 5

3.5 out of 3.5 points

Why might a firm not be able to react quickly to competitors’ pricing moves?

Answers:

A.

Lags in detecting competitors’ prices

B.

Infrequent interactions with competitors

C.

Ambiguities in identifying which firm among a group of firms in a market is cutting price

D.

Difficulties distinguishing drops in volume due to price cutting by rivals from drops in volume due to anticipated decreases in market demand

E.

All of the above

Question 6

3.5 out of 3.5 points

What empirical method generally is used to measure the degree to which products substitute for each other?

Answers:

A.

Standard Industrial Classification

B.

SSNIP

C.

Cross-price elasticity

D.

Relatedness factor

E.

Price comparison

Question 7

3.5 out of 3.5 points

Which U.S. agency is responsible for preventing anticompetitive conduct?

Answers:

A.

Competition Authority

B.

Securities and Exchange Commission

C.

Department of Justice

D.

Office of Fair Trading

E.

Competition Commission

Question 8

3.5 out of 3.5 points

What is defined by the number and size distribution of the firms in a market?

Answers:

A.

Market share

B.

SSNIP

C.

Market structure

D.

Herfindahl index

E.

Numbers-equivalent of firms

Question 9

3.5 out of 3.5 points

The Revenue Destruction Effect in oligopolies occurs when:

Answers:

A.

Firms intentionally reduce output quantity to raise price

B.

Firms all agree to specific output quantities

C.

Firms agree to all sell at the same price

D.

Firms independently maximize their own profits

E.

Firms individually reduce prices to gain more customers

Question 10

3.5 out of 3.5 points

Why might a firm not be able to react quickly to competitors’ pricing moves?

Answers:

A.

Lags in detecting competitors’ prices

B.

Infrequent interactions with competitors

C.

Ambiguities in identifying which firm among a group of firms in a market is cutting price

D.

Difficulties distinguishing drops in volume due to price cutting by rivals from drops in volume due to anticipated decreases in market demand

E.

All of the above