Description : Sellers market denotes a situation where : (1) commodities are available at competitive rates (2) demand exceeds supply (3) supply exceeds demand (4) supply and demand are evenly balanced
Last Answer : (2) demand exceeds supply Explanation: Seller's market is a market which has more buyers than sellers. High prices result from this excess of demand over supply. The opposite of the seller's market is the buyer's market, where supply greatly exceeds demand.
Description : In equilibrium, a perfectly competitive firm will equate - (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost
Last Answer : (4) marginal revenue with marginal cost Explanation: A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost ... marginal cost curve. The marginal cost curve is thus the perfectly competitive firm's supply curve.
Description : In a perfectly competitive market, a firm's - (1) Average Revenue is always equal to Marginal Revenue (2) Marginal Revenue is more than Average Revenue (3) Average Revenue is more than Marginal Revenue (4) Marginal Revenue and Average Revenue are never equal
Last Answer : (1) Average Revenue is always equal to Marginal Revenue Explanation: Average revenue is the amount money received by a firm per unit of output sold. Marginal revenue is the change in total revenue ... . In a perfectly competitive market, a firm's Average Revenue is always equal to Marginal Revenue.
Description : A market in which there are only 2 sellers of a good is known as: a) monopoly b) monopsony c) duopoly d) perfectly competitive View Answer / Hide Answer
Last Answer : c) duopoly
Description : A market in which there is only one seller of a good is known as: a) monopoly b) monopsony c) duopoly d) perfectly competitive
Last Answer : a) monopoly
Description : In a perfectly competitive market, a firm’s (1) Average Revenue is always equal to Marginal Revenue (2) Marginal Revenue is more than Average Revenue (3) Average Revenue is more than Marginal Revenue (4) Marginal Revenue and Average Revenue are never equal
Last Answer : Average Revenue is always equal to Marginal Revenue
Last Answer : demand exceeds supply
Description : In equilibrium, a perfectly competitive firm will equate (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost
Last Answer : marginal revenue with marginal cost
Description : Devaluation makes import - (1) Competitive (2) Inelastic (3) Cheaper (4) Dearer
Last Answer : (4) Dearer Explanation: Devaluation makes import expensive and discourages it, while the export of a country that devalues becomes cheaper and thereby induces trade partners to import more goods from her. Nations that produce industrial goods on a large scale stand to benefit from devaluation.
Description : Which of the following occurs when labour productivity rises? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right
Last Answer : (4) The labour demand curve shifts to the right Explanation: As labour productivity increases, the production function shifts up and simultaneously the labor demand curve shifts out and right. At ... , the production function shifts up and simultaneously the labor demand curve shifts out and right.
Description : In short run, if a competitive firm incurs losses, it will - (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.
Last Answer : (1) stop production. Explanation: In the short run, a firm that is operating at a loss (where the revenue is less that the total cost or the price is less than the unit cost) must ... will shutdown if the sale of the goods or services produced cannot even cover the variable costs of production.
Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.
Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.
Description : The demand curve facing a perfectly competitive firm is - (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic
Last Answer : (4) perfectly elastic Explanation: A perfectly competitive industry is comprised of a. large number of relatively small firms that sell identical products. Each perfectly competitive firm is so small ... at the going market price. This translates into a horizontal or perfectly elastic demand curve.
Description : In the long-run equilibrium, a competitive firm earns - (1) Super-normal profit (2) Profits equal to other firms (3) Normal profit (4) No profit
Last Answer : (3) Normal profit Explanation: Making the assumption that the market demand curve remains unchanged, higher market supply will reduce the equilibrium market price until the price = long run average cost. ... of firms in and out of the industry and a long-run equilibrium has been established.
Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above
Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness
Description : Given competitive conditions, a firm in the long run earn (a) Quasi-rent (b) Pure-rent (c) Normal profit (d) Economic profit
Last Answer : (c) Normal profit
Description : Devaluation makes import (1) Competitive (2) Inelastic (3) Cheaper (4) Dearer
Last Answer : Dearer
Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment
Last Answer : makes the monetary policies less effective
Description : The demand curve facing a perfectly competitive firm is (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic
Last Answer : perfectly elastic
Description : Which of the following occurs when labour productivity rises ? (1) The equilibrium nominal wage falls. (2) The equilibrium quantity of labour falls. (3) Competitive firms will be induced to use more capital (4) The labour demand curve shifts to the right
Last Answer : The labour demand curve shifts to the right
Description : In short run, if a competitive firm incurs losses, it will (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.
Last Answer : stop production.
Description : In the long-run equilibrium, a competitive firm earns (1) Super-normal profit (2) Profits equal to other firms (3) Normal profit (4) No profit
Last Answer : Normal profit
Description : What are the best qualifications, degrees, certifications or skills, etc. in the business field that one should obtain so as to be competitive when the job market rebounds?
Last Answer : It has been my understanding in the past that one is usually expected to work in the business field for a few years before going for an MBA. I don't know if that is changing with ... based programming and networking will be in demand but you have to decide where your aptitudes and interests lie.
Description : Which of the following is characteristic of a competitive market?
Last Answer : efficiency
Description : Which of the following could not prevent a market from becoming perfectly competitive?
Last Answer : excessive information
Description : In a perfectly competitive market, individual consumers have _____.?
Last Answer : no influence over determining price
Description : Which one is a competitive market?
Last Answer : Ans. Perfect market
Description : Choice of International market entry mode is dependent on ...? A. Breadth of competitive advantage B. Tradability C. None of the above D. All the above
Last Answer : All the above
Description : Porter's notion of a differentiation strategy is best described as one in which firms seek a competitive advantage . A. Through achieving a match between their internal and external ... competitors. C. Through concentrating on a narrow market segment. D. Through establishing their uniqueness
Last Answer : Through establishing their uniqueness
Description : What metaphor is used to describe the competitive space where products are not yet well defined, competitors are not structured and the market is relatively unknown? A. Blue ocean B. Red sea C. Blue lagoon D. Red ocean
Last Answer : Blue ocean
Description : What is meant by focused differentiation? A. Providing a high perceived value service or product to a selected market segment that justifies a substantial price premium B. ... differentiation D. Concentrating on differentiation as the primary means of achieving competitive advantage
Last Answer : Providing a high perceived value service or product to a selected market segment that justifies a substantial price premium
Description : Porter's notion of a differentiation strategy is best described as one in which firms seek a competitive advantage . A. Through achieving a match between their internal and external environments ... . C. Through concentrating on a narrow market segment. D. Through establishing their uniqueness.
Last Answer : Through establishing their uniqueness.
Description : What metaphor is used to describe the competitive space where products are not yet well defined, competitors are not structured, and the market is relatively unknown? A. Blue ocean B. Red sea C. Blue lagoon D. Red ocean
Description : What is the most important criterion for selecting an alliance partner? a) Alliance partner must help the company towards a competitive advantage. b) Alliance partner must be a multinational firm with ... Alliance partner must come from the same culture. d) Alliance partner must have similar assets.
Last Answer : Alliance partner must help the company towards a competitive advantage.
Description : The Diamond Model assumes that: a) Multinational firms must develop global strategies based only on home demand conditions. b) Multinational firms must pay less attention to global consumers than domestic ... a firm plays a key role in shaping that firm's competitive advantage in global markets.
Last Answer : The national home base of a firm plays a key role in shaping that firm's competitive advantage in global markets.
Description : What are the four industry globalizing drivers? a) Market drivers, cost drivers, government drivers, and localization drivers b) Market drivers, cost drivers, government drivers, and ... drivers, bargaining drivers d) Market drivers, cost drivers, competitive drivers, regionalization drivers
Last Answer : Market drivers, cost drivers, government drivers, and competitive drivers
Description : The type of competitive structure that exists when a firm with many potential competitors attempts to develop a differential marketing strategy to establish its own market share is 1. mixed competition 2. oligopoly 3. monopolistic competition 4. perfect competition 5. none of these
Last Answer : perfect competition
Description : Sellers market denotes a situation where (1) Commodities are available at competitive rates (2) Demand exceeds supply (3) Supply exceeds demand (4) Supply and demand are equal
Last Answer : (2) Demand exceeds supply
Description : Which tool can you use as a quick comparison tool when conducting a competitive analysis concerning production? a. Bond ratings b. Stock price c. Customer survey d. Market share e. None of the above
Last Answer : c. Customer survey
Description : This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by distinguishing our product with an excellent design, high awareness, and easy ... Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : e. Broad Differentiation
Description : This strategy will allow us to maintain a presence in every market segment. Competitive advantage will be gained by keeping R&D costs, Production costs and raw material costs to a minimum, ... Life Cycle Focus d. Differentiation Strategy with a Product Life Cycle Focus e. Broad Differentiation
Last Answer : a. Broad Cost Leader
Description : Methods used to determine total budget for advertising its market offerings are A. affordable method B. competitive parity method C. percentage of sales method D. all of above
Last Answer : D. all of above
Description : In market-penetration pricing, the company's objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. ... their market share C. Minimize their market share D. Maximize volume E. None of the above
Last Answer : B. Maximize their market share
Description : Robert is a marketer for a global consumer products company. He is working on the promotional campaign designed to reach a target audience in a new international market. Robert is working ... A. Socio-cultural environment B. Competitive environment C. Economic environment D. Legal environment
Last Answer : A. Socio-cultural environment
Description : Philip Morris's strategy of cutting prices on its Marlboro cigarettes to enlarge its market share in the increasingly competitive tobacco industry is known as A)market penetration. B)market development. C)product development. D)product penetration. E)concentric integration.
Last Answer : A)market penetration.
Description : A __________ is created when a company matches its distinctive competency to the opportunities it has discovered in the market. A)market opportunity B)market requirement C)competitive advantage D)strategic window E)competitive opportunity
Last Answer : C)competitive advantage
Description : The three major considerations in assessing opportunities and resources are environmental scanning, evaluating market opportunities, and A)competitive scanning. B)environmental analysis. C)understanding the firm's capabilities. D)opportunity search.
Last Answer : C)understanding the firm's capabilities.
Description : Smith's Fine Foods is involved in selecting and analysing a target market and developing a marketing mix to gain long -run competitive advantages. Based on this example, Smith's is creating a A)corporate strategy. B)target design. C)mix strategy. D)marketing strategy. E)marketing tactic.
Last Answer : D)marketing strategy.