ECON625 - Quiz - Week 5 - Graded 35/35

Question 1

1. The steepness (slope) of an indifference curve indicates which of the following?

[removed]	A.	The tradeoff a consumer is willing to make between price and quality
[removed]	B.	The change in price holding product benefit constant
[removed]	C.	The change in benefit holding price constant
[removed]	D.	The tradeoff between consumer surplus and producer surplus
[removed]	E.	None of the above

3.5 points

Question 2

1. Which of the following conditions does not tend to heat up price competition?

[removed]	A.	Many sellers in the market
[removed]	B.	Products are differentiated/buyers have high switching costs
[removed]	C.	The industry is stagnant or declining
[removed]	D.	Some firms have excess capacity
[removed]	E.	There are large/infrequent sales orders

3.5 points

Question 3

1. In which of the following ways can entry erode incumbents’ profits?

[removed]	A.	Entrants divide market demand among fewer sellers
[removed]	B.	Entrants reduce internal rivalry
[removed]	C.	Entrants increase market concentration
[removed]	D.	Entrants usually grow the market for all parties
[removed]	E.	Entrants decrease market concentration

3.5 points

Question 4

1. What type of curve can be used to describe the set of price-quality combinations that yields the same consumer surplus to an individual?

3.5 points

Question 5

1. Which of the following is not a part of the five-forces framework?

[removed]	A.	Supplier Power
[removed]	B.	Buyer Power
[removed]	C.	Substitutes and Complements
[removed]	D.	Regulation
[removed]	E.	Internal rivalry

3.5 points

Question 6

1. Which of following factors should be considered when assessing complements and substitutes?

[removed]	A.	Availability of close substitutes and/or complements
[removed]	B.	Price-value characteristics of substitutes/complements
[removed]	C.	Price elasticity of industry demand
[removed]	D.	All of the above
[removed]	E.	None of the above

3.5 points

Question 7

1. Which of the following is generally thought of as a buyer in the hospital industry?

[removed]	A.	Medical equipment companies
[removed]	B.	Patients
[removed]	C.	Pharmaceutical drug houses
[removed]	D.	Nurse
[removed]	E.	Technician

3.5 points

Question 8

1. Which of the following is generally thought of as a supplier in the hospital industry?

3.5 points

Question 9

1. Substitutes erode profits because of which of the following factor?

[removed]	A.	Substitutes compete for similar inputs driving up production costs
[removed]	B.	Substitutes divide demand and drive up internal rivalry
[removed]	C.	Firms producing substitutes use similar worker skills dividing the labor pool
[removed]	D.	Manufacturers of substitutes enter markets later and have lower sunk costs
[removed]	E.	None of the above

3.5 points

Question 10

1. What is the perceived benefit of a product per unit consumed minus the product’s monetary price?

ECON625 - Quiz - Week 5 - Graded 35/35

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