ECON625 – Quiz – Week 5 – Graded 35/35

Question 11. The steepness (slope) of an indifference curve indicates which of the following?A.The tradeoff a consumer is willing to make between price and qualityB.The change in price holding product benefit constantC.The change in benefit holding price constantD.The tradeoff between consumer surplus and producer surplusE.None of the above3.5 points Question 21. Which of the following conditions does not tend to heat up price competition?A.Many sellers in the marketB.Products are differentiated/buyers have high switching costsC.The industry is stagnant or decliningD.Some firms have excess capacityE.There are large/infrequent sales orders3.5 points Question 31. In which of the following ways can entry erode incumbents’ profits?A.Entrants divide market demand among fewer sellersB.Entrants reduce internal rivalryC.Entrants increase market concentrationD.Entrants usually grow the market for all partiesE.Entrants decrease market concentration3.5 points Question 41. What type of curve can be used to describe the set of price-quality combinations that yields the same consumer surplus to an individual?A.Frontier curveB.Learning curveC.Indifference curveD.Implicit curveE.Level curve3.5 points Question 51. Which of the following is not a part of the five-forces framework?A.Supplier PowerB.Buyer PowerC.Substitutes and ComplementsD.RegulationE.Internal rivalry3.5 points Question 61. Which of following factors should be considered when assessing complements and substitutes?A.Availability of close substitutes and/or complementsB.Price-value characteristics of substitutes/complementsC.Price elasticity of industry demandD.All of the aboveE.None of the above3.5 points Question 71. Which of the following is generally thought of as a buyer in the hospital industry?A.Medical equipment companiesB.PatientsC.Pharmaceutical drug housesD.NurseE.Technician3.5 points Question 81. Which of the following is generally thought of as a supplier in the hospital industry?A.MedicaidB.Admitting physiciansC.PatientsD.Hospital-based physicianE.Medicare3.5 points Question 91. Substitutes erode profits because of which of the following factor?A.Substitutes compete for similar inputs driving up production costsB.Substitutes divide demand and drive up internal rivalryC.Firms producing substitutes use similar worker skills dividing the labor poolD.Manufacturers of substitutes enter markets later and have lower sunk costsE.None of the above3.5 points Question 101. What is the perceived benefit of a product per unit consumed minus the product’s monetary price?A.Maximum willingness-to-payB.Value chainC.Value creationD.Competitive advantageE.Consumer surplus