The cash or concessions present in contract terms that parties agree to in order to share risks are ...

The cash or concessions present in contract terms that parties agree to in order to share risks are called:
 a. quid pro quos.
  b. property rights.
  c. flexible takes.
  d. contract prices.

QUESTION 2

Monopolistic competition describes a situation where:
 a. a few firms produce a standardized product.
 b. a large number of firms produce differentiated products.
  c. a few firms produce differentiated products.
 d. there are substantial barriers to entry.

QUESTION 3

_____ refers to an enforceable set of promises to take certain actions over the future.
 a. A bond
  b. A contract
  c. A capitation fee
  d. A collusion

QUESTION 4

Advertising:
 a. cannot influence market demand.
 b. shifts the average total cost curve upward.
 c. is used only by perfectly competitive firms.
 d. makes demand more elastic by creating customer loyalty.

QUESTION 5

Investments that are specific to a relationship (i.e. of lower value elsewhere) are considered risky and require:
 a. an enforceable contract.
  b. an efficient spot market.
  c. high rates of return.
  d. verbal commitments.

QUESTION 6

The market structure(s) most likely to exhibit extensive advertising is (are):
 a. monopoly.
 b. monopolistic competition.
  c. perfect competition.
 d. monopoly and oligopoly.

QUESTION 7

Which of the following was an outcome of uncoordinated oil drilling in Huntington Beach, California?
 a. The entire oil present underground had been extracted within few years.
  b. Underground oil pressure had increased due to excessive drilling leading to an oil spill into the adjacent sea.
  c. A majority of the oil could not be drilled out as low underground pressure prevented oil from reaching the surface.
  d. The oil belt suffered frequent earthquakes as excessive drilling had loosened the soil bonding.

QUESTION 8

When marketing makes customers better informed about all firms in the market:
 a. demand curves for specific brands in the market are likely to become less elastic.
  b. each firm is likely to have less market power.
 c. firms are better able to foster stronger brand loyalty.
 d. the market power of individual firms is strengthened.