Week 9 - Kahoot Flashcards
1
Q
- Imperfect competition allows us to study:
- Advertising
- Markup decisions
- All of these
- Strategic business
A
Answer: All of these
2
Q
- If it cost Dior $1,000 to make a purse which they sell for $5,000 the markup is:
- 50x
- 500x
- 5x
- 0.5x
A
Answer: 5x
3
Q
- Buying a competing company requires a _______ markup strategy:
- High
- Low
- Medium
- None of these
A
Answer: High
4
Q
- A company would engage in below-cost pricing to:
- End a price war
- Develop a new market
- Decrease demand for complements
- All of these
A
Answer: Develop a new market
5
Q
- T/F Firms in perfectly competitive industries have a small degree of power over pricing.
A
False
6
Q
- Which of the following is NOT a characteristic of a monopoly:
- One seller
- Complete marker power
- Inelastic demand
- None of these
A
Answer: None of these
7
Q
- T/F Monopsony is when there is only one demander of a good or service.
A
Answer: True
8
Q
- One cost of monopolization is:
- Less innovation
- Higher wages
- Lower prices
- All of these
A
Answer: less innovation
9
Q
- T/F On average in the U.S. markups across industries have generally been falling.
A
Answer: False
10
Q
- T/F The higher the HHI, the more concentrated the industry is.
A
Answer: True
