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BEC > Market Influence on Business Strategies > Flashcards

Market Influence on Business Strategies Flashcards

1
Q

What is a collection of buyers and sellers meeting or communicating in order to trade goods or services?

A

Market

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2
Q

What dictates price and is the maximum quantity of a specific good that consumers are willing and able to purchase at each and every price?

A

Demand curve

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3
Q

What is dictate by price?

A

Quantity demanded

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4
Q

What is the result from change in price and slides along the curve?

A

Change in quantity demanded

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5
Q

What is not due to change in price and shifts curve?

A

Change in demand

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6
Q

What is a downward sloping curve?

A

Fundamental Law of Demand

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7
Q

What effect is when consumers tend to purchase more(less) of a good when its price falls(rises) in relation to the price of other goods?

A

Substitution effect

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8
Q

What are the factors that shift the demand curve?

A

Wealth, Price of related goods, consumer income, consumer tastes, consumer expectations, or number of buyers

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9
Q

What is the maximum qunatity of a specific good sellers are willing and able to produce at each & every price?

A

Supply curve

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10
Q

What are the factors that shift supply curves?

A

Price expectations, production costs, price or demand for other goods, subsidies or taxes, and technology

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11
Q

When is a market in equilibrium?

A

No forces acting to change the current price/quantity combination. Also, point where the supply & demand curves intersect.

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12
Q

What are price ceilings?

A

Price established below the equilibrium price(shortage), QD>QS

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13
Q

What are price floors?

A

Minimum price set above the equilibrium price(surplus), QS>QD

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14
Q

What is the measure of how sensitive demand for?

A

Elasticity

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15
Q

Calculation for Price Elasticity of Demand

A

% change of quantity demanded / % change in price

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16
Q

What is not sensitive and when absolute price of elasticity < 1.0?

A

Price inelasticity

17
Q

What is sensitive and absolute price of elasticity > 1.0?

A

Price elasticity

18
Q

What is the absolute price of elasticity = 1.0?

A

Unit elasticity

19
Q

Calculation for Price Elasticity of Supply

A

% change of quantity supplied / % change in price

20
Q

Calculation for cross elasticity

A

% change in number of units of X demanded(supplied) / % change in price of Y

21
Q

Calculation for income elasticity of demand

A

% change in number of units of X demanded / % change in income

22
Q

What is it called when more and more units of an input are considered with a fixed amount of other inputs, output increases but at a diminishing rate?

A

Law of Diminishing Returns

23
Q

What type of cost is the change in total cost associated with a change in output quantity over a period of time?

A

Marginal cost

24
Q

What influences marginal cost?

A

Variable costs

25
Q

What are the 4 market structures?

A

Pure competition, monopolistic competition, oligopoly, and monopoly

26
Q

What market structure consists of no individual firm can influence the market price?

A

Pure competition

27
Q

What is the strategy under perfect competition?

A

Maintaining the market share and responsiveness of the sales price

28
Q

What market structure consists of many sellers compete to sell a differentiated product in a market

A

Monopolistic competition

29
Q

What is the strategy under monopolistic competition?

A

Maintaining the market share also plan for enhanced product differentiation.

30
Q

What market structure consists of few sellers dominate the sales of a product and entry of new sellers is difficult?

A

Oligopoly

31
Q

What is the strategy under oligopoly?

A

Focus on market share and call for the proper amount of advertising and ways to properly adapt to price changes

32
Q

What market structure consists of concentration of supply in the hands of a single firm?

A

Monopoly

33
Q

What are the strategies under monopoly?

A

Ignore market share and focus on profitability from production levels that maximize profits

34
Q

When does a firm operate best?

A

Marginal revenue = marginal cost

35
Q

What are the factors of production?

A

Land, labor, and capital

36
Q

What are the 4 components of SWOT analysis?

A

Strengths, Weaknesses, Opportunities, and Threats

37
Q

What are the major strategies for value chain analysis?

A

Core competencies, industry structure, and segmentation analysis

38
Q

What are the factors that affect the overall industry and competitive environment of the industry?

A

Economy, regulations, demographics, technological, social, and political

39
Q

What are the factors that affect the competitive environment of the firm?

A

Barriers, Market competitiveness, existence of substitute products, bargaining power of customers, & suppliers

BEC (32 decks)

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