In ________ the market is flooded with companies that sell essentially the same commodity-like product and customer responsiveness to changes in price is high.
A) monopsony
B) monopoly
C) oligopoly
D) monopolistic competition
E) perfect competition
Question 2Which of the following markets is most likely to display the characteristics of monopolistic competition?
A) the market for agricultural products
B) the retail trade
C) the market for steel
D) the market for household appliances
E) local utilities
Question 3Which of the following is a characteristic of monopolistic competition?
A) The actions of one firm affect all the other firms.
B) Any one company has little or no influence on price.
C) A very few companies dominate the market.
D) Customers have few viable substitutes available and because of this, are less responsive to changes in price.
E) Firms have the ability to differentiate their products from competitors.
Question 4Bargaining power refers to ________.
A) the process of choosing to sell new products in completely new markets
B) the firm's ability to create new products and sell these to the existing customers
C) the ability of the firm to differentiate its products from competitors' products
D) the degree of influence that a producer or consumer has in influencing what the selling price will be
E) the resources and capabilities that allow a firm to grow in the future by making new products or selling to new customers
Question 5The demand for petroleum decreases after its prices rise drastically. Customers begin to buy natural gas as it satisfactorily serves the same purpose as petroleum does. Petroleum and natural gas are ________.
A) complements
B) substitutes
C) demerit goods
D) independent goods
E) experience goods
Question 6________ refers to a market in which many similar firms compete and some firms have the ability to differentiate their products from competitors.
Question 7A strategy is ________.
A) two or more things functioning together to produce a result not independently obtainable
B) that which orients the entire organization toward the pursuit of its mission
C) the desired result that a firm envisions, plans, and commits to achieve
D) day-to-day activities and tasks that need to get done to accomplish a desired goal
E) a result, end, mean, aim, or goal of an action intentionally undertaken
Question 8Which of the following is an example of a tactic?
A) distributing products through a network of wholly-owned retail stores
B) divesting all manufacturing, assembly, and distribution and becoming a communication and sales organization to promote the sale of products
C) launching a new product line that is designed to meet the needs of new consumer groups
D) offering products at a discount sale price for a short period of time to stimulate demand or win market share
E) restructuring the entire value chain both inside and outside the firm to support a low-cost leadership position for the long run
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