Question 1

A FIRM faces an almost perfectly flat or horizontal demand curve in a(an) ______________ market situation.

Accepted Answer

A)  monopolistic competition 
B)  monopoly 
C)  pure competition 
D)  oligopoly 
E)  None of these--demand curves are always down-sloping. 
A)  monopolistic competition 
B)  monopoly 
C)  pure competition 
D)  oligopoly 
E)  None of these--demand curves are always down-sloping.

Question 2

The elasticity of demand for a particular product depends upon:

Accepted Answer

A)  the availability of substitutes. 
B)  the producer's costs. 
C)  the availability of raw materials. 
D)  the quantity the producer is willing to supply. 
E)  All of these alternatives are correct. 
A)  the availability of substitutes. 
B)  the producer's costs. 
C)  the availability of raw materials. 
D)  the quantity the producer is willing to supply. 
E)  All of these alternatives are correct.

Question 3

The "law of diminishing demand" says that if a firm raised the price of its product, a smaller quantity would be demanded.

Accepted Answer

A) True 
 B)False

Question 4

When a large number of substitutes are available, demand will tend to be more elastic.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the best example of an oligopoly situation?

Accepted Answer

A)  Grocery retailers in Miami. 
B)  A community in the mountains with one electric power company. 
C)  A farmers' market with many farmers selling peaches. 
D)  A small airport with two airlines going to different destinations. 
E)  Most of the aluminum in the U.S. is sold by three producers. 
A)  Grocery retailers in Miami. 
B)  A community in the mountains with one electric power company. 
C)  A farmers' market with many farmers selling peaches. 
D)  A small airport with two airlines going to different destinations. 
E)  Most of the aluminum in the U.S. is sold by three producers.

Question 6

Lack of good substitutes for a particular product affects its demand curve as follows:

Accepted Answer

A)  Makes it more elastic 
B)  Makes it less elastic 
C)  Makes it unitary elastic 
D)  Doesn't affect it at all 
E)  Cannot be determined without knowing the supply curve 
A)  Makes it more elastic 
B)  Makes it less elastic 
C)  Makes it unitary elastic 
D)  Doesn't affect it at all 
E)  Cannot be determined without knowing the supply curve

Question 7

If demand is inelastic, then total revenue would increase if price were lowered.

Accepted Answer

A) True 
 B)False

Question 8

A demand curve cannot be both elastic and inelastic.

Accepted Answer

A) True 
 B)False

Question 9

A "demand schedule" for a television manufacturer would show how many new TVs are to be produced each month during the current production year.

Accepted Answer

A) True 
 B)False

Question 10

The elasticity of demand for a particular product depends upon:

Accepted Answer

A)  the importance of the item in each customer's budget. 
B)  the urgency of the target customers' needs. 
C)  the availability of substitutes. 
D)  All of these alternatives are correct. 
A)  the importance of the item in each customer's budget. 
B)  the urgency of the target customers' needs. 
C)  the availability of substitutes. 
D)  All of these alternatives are correct.

Question 11

Most supply curves slope upward, indicating that suppliers will be willing to offer greater quantities at higher prices.

Accepted Answer

A) True 
 B)False

Question 12

In pure competition, individual producers have perfectly flat demand curves while the industry demand curve is down-sloping at the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 13

In an oligopoly situation, a "price war" will cause all sellers to lose sales revenue.

Accepted Answer

A) True 
 B)False

Question 14

An oligopoly market situation has:

Accepted Answer

A)  relatively few sellers--or a few large firms and many smaller firms which follow the lead of the larger ones. 
B)  essentially homogeneous products. 
C)  fairly inelastic industry demand. 
D)  All of these alternatives are correct. 
A)  relatively few sellers--or a few large firms and many smaller firms which follow the lead of the larger ones. 
B)  essentially homogeneous products. 
C)  fairly inelastic industry demand. 
D)  All of these alternatives are correct.

Question 15

In monopolistic competition, sellers feel they have some competition in a market and consumers see competitive products as heterogeneous.

Accepted Answer

A) True 
 B)False

Question 16

The equilibrium point is that point at which the quantity demanded would not change if price were either lowered or raised.

Accepted Answer

A) True 
 B)False

A FIRM faces an almost perfectly flat or horizontal demand curve in a(an) ______________ market situation.

The elasticity of demand for a particular product depends upon:

The "law of diminishing demand" says that if a firm raised the price of its product, a smaller quantity would be demanded.

When a large number of substitutes are available, demand will tend to be more elastic.

Which of the following is the best example of an oligopoly situation?

Lack of good substitutes for a particular product affects its demand curve as follows:

If demand is inelastic, then total revenue would increase if price were lowered.

A demand curve cannot be both elastic and inelastic.

A "demand schedule" for a television manufacturer would show how many new TVs are to be produced each month during the current production year.

The elasticity of demand for a particular product depends upon:

Most supply curves slope upward, indicating that suppliers will be willing to offer greater quantities at higher prices.

In pure competition, individual producers have perfectly flat demand curves while the industry demand curve is down-sloping at the equilibrium price.

In an oligopoly situation, a "price war" will cause all sellers to lose sales revenue.

An oligopoly market situation has:

In monopolistic competition, sellers feel they have some competition in a market and consumers see competitive products as heterogeneous.

The equilibrium point is that point at which the quantity demanded would not change if price were either lowered or raised.

Marketing39s Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion - Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Marketing Arithmetic

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Exam 19: Economics Fundamentals

A FIRM faces an almost perfectly flat or horizontal demand curve in a(an) ______________ market situation.

The elasticity of demand for a particular product depends upon:

The "law of diminishing demand" says that if a firm raised the price of its product, a smaller quantity would be demanded.

When a large number of substitutes are available, demand will tend to be more elastic.

Which of the following is the best example of an oligopoly situation?

Lack of good substitutes for a particular product affects its demand curve as follows:

If demand is inelastic, then total revenue would increase if price were lowered.

A demand curve cannot be both elastic and inelastic.

A "demand schedule" for a television manufacturer would show how many new TVs are to be produced each month during the current production year.

The elasticity of demand for a particular product depends upon:

Most supply curves slope upward, indicating that suppliers will be willing to offer greater quantities at higher prices.

In pure competition, individual producers have perfectly flat demand curves while the industry demand curve is down-sloping at the equilibrium price.

In an oligopoly situation, a "price war" will cause all sellers to lose sales revenue.

An oligopoly market situation has:

In monopolistic competition, sellers feel they have some competition in a market and consumers see competitive products as heterogeneous.

The equilibrium point is that point at which the quantity demanded would not change if price were either lowered or raised.

Marketing39s Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion - Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Marketing Arithmetic

Filters