Question 1

Regulatory commissions often set a(n)____ for a regulated business

Accepted Answer

A) economic profit. 
B) fair rate of return. 
C) overhead charge. 
D) entry barrier.

Question 2

A limit on how much a firm can export to a foreign country is called a(n)

Accepted Answer

A) import tax. 
B) tariff. 
C) quota. 
D) dumped supply.

Question 3

A competitive strategy is

Accepted Answer

A) is the development of a price fixing arrangement. 
B) the development of a distinctive capability. 
C) a rent-seeking strategy. 
D) a path to accounting profits.

Question 4

If consumers desire choice

Accepted Answer

A) network effects with be minimized. 
B) network effects are enhanced. 
C) networks shift back to a previous technology. 
D) government will regulate variety.

Question 5

Social regulations come about because of

Accepted Answer

A) market failure 
B) government failure 
C) changes in the social contract 
D) rent-seeking by bureaucrats.

Question 6

Network effects result from

Accepted Answer

A) entry barriers. 
B) economies of scale. 
C) standardization. 
D) none of these choices.

Question 7

Dumping means that a firm is

Accepted Answer

A) violating environmental laws. 
B) selling a product in a foreign country at a lower price than it does at home. 
C) selling a product in a foreign country at a higher price than it does at home. 
D) selling a product of lower quality in a foreign country.

Question 8

Network affects can be present when the

Accepted Answer

A) internet was initially open to everyone. 
B) costs of production are low relative to the cost of distribution. 
C) cost of production are low relative to the costs of rent-seeking. 
D) costs of distribution are low relative to the costs of production.

Question 9

Antitrust laws were initially developed in the 1980s.

Accepted Answer

A) True 
 B)False

Question 10

Network effects occur is the costs of production are lower than the costs of production.

Accepted Answer

A) True 
 B)False

Question 11

The higher the HHI

Accepted Answer

A) the less dominated a market is by a single firm. 
B) the more competitive is the market. 
C) the more dominated a market is by a single firm. 
D) the less likely the Sherman Act will be applied to a firm.

Question 12

Tariffs and quotas are used to promote trade with foreign countries.

Accepted Answer

A) True 
 B)False

Exam 10: Strategies With Respect to Government

Regulatory commissions often set a(n) ____ for a regulated business

A limit on how much a firm can export to a foreign country is called a(n)

A competitive strategy is

If consumers desire choice

Social regulations come about because of

Network effects result from

Dumping means that a firm is

Network affects can be present when the

Antitrust laws were initially developed in the 1980s.

Network effects occur is the costs of production are lower than the costs of production.

The higher the HHI

Tariffs and quotas are used to promote trade with foreign countries.