Day 36

Question 1

Profitability from production levels that maximize profit

Answer 1

Characteristic of a MONOPOLY

NOT Monopolistic Competition

MCQ-03485

Question 2

What occurs when a minimum price is set above equilibrium price?

Answer 2

An excess supply or surplus

MCQ-03460

Question 3

An industry that is Oligopolistic is characterized by:

Answer 3

1. Few firms in the mkt
2. Significant barriers to entry
3. Differentiated products
4. Fixed (or Semi-Fixed) prices
5. Kinked demand curves

MCQ-03445

Question 4

What are the characteristics of an Just-In-Time production environment?

Answer 4

1. Lot sizes equal to one
2. Insignificant setup time and costs
3. Balanced and level workloads

With JIT, the flow of goods is controlled by a “PULL” approach, where an item is produced only when it is needed down the line

MCQ-03880

Question 5

When do differentiation strategies fail?

Answer 5

When the differentiation premium does NOT exceed it’s costs

If a firm pays a higher cost of the premium than it is able to recoup in the market place, then profits decrease, they lose competitive advantage, and the differentiation strategy FAILED

MCQ-03609

Question 6

Define: Kinked demand curve - Oligopoly

Answer 6

• When an Oligopolist lowers its price, the other firms in the Oligopoly will match the price reduction
• When an Oligopolist raises its prices, the other firms will ignore the price increase

MCQ-03815

Question 7

What should a company do when seeking competitive advantages in planning for the implementation of new software?

Answer 7

Design an optimal process and then align the software

MCQ-05063

Question 8

Define: Stress Test

Answer 8

Judges the tested system’s ability to handle extremes

MCQ-14513

Question 9

What type of system test would validate the logical reasoning of a system

Answer 9

Sanity Test

MCQ-14513

Question 10

Under an expansionary policy, what would the Federal Reserve do?

Answer 10

Purchase government securities and lower the Discount Rate

Purchasing securities will increase the money supply and expand the economy

MCQ-05870

Question 11

How does Asymmetric Encryption work?

Answer 11

A Public Key is used to encrypt the message and a Private Key is used to decrypt the message on the other end

MCQ-06446

Question 12

What will happen to the equilibrium price when demand increases and supply decreases?

Answer 12

• If quantity demanded increases = Price increase
• If supply decreases = Price increases

MCQ-03687