Which of the following would not help identify market structure?
a. number of firms in the industry
b. type of product produced in the industry
c. ease of entry into the industry
d. forms of competition among firms in the industry
e. price of the good
QUESTION 2An industry consists of all firms that supply output to a particular market.
a. True
b. False
QUESTION 3Profit maximization depends upon demand conditions, as well as upon productivity and costs.
a. True
b. False
QUESTION 4IBM undertook a massive restructuring program to decentralize into six smaller decision-making groups in order to reduce economies of scale.
a. True
b. False
QUESTION 5Which of the following is not an effort by McDonald's to cope with diseconomies of scale?
a. being exposed to country and regions risk, such as environmental protests
b. putting mini-restaurants in airports, gas stations, and Wal-Marts
c. allowing managers in each region of the U.S. more leeway in pricing and promotion
d. reducing product development time
e. closing unprofitable restaurants
QUESTION 6An example of an uncontrollable resource that contributes to diseconomies of scale for a movie theater is
a. concession stand staff
b. public roads congested with traffic
c. volume discounts from movie distributors
d. a single lobby in the theater
e. bigger, more noticeable newspaper ads
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