Question 1

What term describes a policy in which a firm is prepared to match whatever change in strategy a competitor makes?

Accepted Answer

A) Response strategy 
B) Always cooperate strategy 
C) Always aggress strategy 
D) Tit-for-tat strategy 
E) Trigger strategy 
A) Response strategy 
B) Always cooperate strategy 
C) Always aggress strategy 
D) Tit-for-tat strategy 
E) Trigger strategy

Question 2

Suppose Firm #1 dominates a market for widgets priced at $100/unit with a marginal cost of $60/unit.If Firm #2 enters the market and offers comparable widgets at a 3% discount,extending a price umbrella optimal as long as Firm #1 loses no more than what portion of its market share?

Accepted Answer

The answer of Suppose Firm #1 dominates a market for...

Question 3

What type of pricing involves a firm quoting a single delivered price for all buyers with the firm absorbing any freight charges itself?

Accepted Answer

A) Uniform delivered pricing 
B) Uniform FOB pricing 
C) Uniform customer pricing 
D) Uniform favored pricing 
E) Uniform competitive pricing 
A) Uniform delivered pricing 
B) Uniform FOB pricing 
C) Uniform customer pricing 
D) Uniform favored pricing 
E) Uniform competitive pricing

Question 4

In what situation are the Department of Justice and Federal Trade Commission most likely to challenge the merger between two competitors?

Accepted Answer

A) When the Herfindahl index is close to 0 and the number of firms is large 
B) When targeted price discounts can be implemented by rival firms 
C) When the merger threatens to substantially increase market concentration 
D) When the merger threatens to substantially decrease market concentration 
E) In a large industry with many competitors, each having a relatively equal market share 
A) When the Herfindahl index is close to 0 and the number of firms is large 
B) When targeted price discounts can be implemented by rival firms 
C) When the merger threatens to substantially increase market concentration 
D) When the merger threatens to substantially decrease market concentration 
E) In a large industry with many competitors, each having a relatively equal market share

Question 5

What is a grim trigger strategy in a two firm repeated game?

Accepted Answer

A) A strategy where a firm will always aggress regardless of how the other firm acts 
B) A strategy where a firm will always cooperate regardless of how the other firm acts 
C) A strategy in which a firm is prepared to match whatever changes in strategy the competitor makes 
D) A strategy in which a firm initially cooperates and then aggresses for the rest of the game as soon as the opponent aggresses 
E) A strategy in which a firm is prepared to aggress when its opponent cooperates and cooperate when its opponent aggresses 
A) A strategy where a firm will always aggress regardless of how the other firm acts 
B) A strategy where a firm will always cooperate regardless of how the other firm acts 
C) A strategy in which a firm is prepared to match whatever changes in strategy the competitor makes 
D) A strategy in which a firm initially cooperates and then aggresses for the rest of the game as soon as the opponent aggresses 
E) A strategy in which a firm is prepared to aggress when its opponent cooperates and cooperate when its opponent aggresses

What term describes a policy in which a firm is prepared to match whatever change in strategy a competitor makes?

Suppose Firm #1 dominates a market for widgets priced at $100/unit with a marginal cost of $60/unit.If Firm #2 enters the market and offers comparable widgets at a 3% discount,extending a price umbrella optimal as long as Firm #1 loses no more than what portion of its market share?

What type of pricing involves a firm quoting a single delivered price for all buyers with the firm absorbing any freight charges itself?

In what situation are the Department of Justice and Federal Trade Commission most likely to challenge the merger between two competitors?

What is a grim trigger strategy in a two firm repeated game?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters

Exam 10: The Dynamics of Pricing Rivalry

What term describes a policy in which a firm is prepared to match whatever change in strategy a competitor makes?

Suppose Firm #1 dominates a market for widgets priced at $100/unit with a marginal cost of $60/unit.If Firm #2 enters the market and offers comparable widgets at a 3% discount,extending a price umbrella optimal as long as Firm #1 loses no more than what portion of its market share?

What type of pricing involves a firm quoting a single delivered price for all buyers with the firm absorbing any freight charges itself?

In what situation are the Department of Justice and Federal Trade Commission most likely to challenge the merger between two competitors?

What is a grim trigger strategy in a two firm repeated game?

Basic Microeconomic Principles

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters