A. Buyer power is higher
B. Supplier power is higher
C. Substitute threat is higher
D. Rivalry is lower
Related Mcqs:
- In Porter’s five force model conditions are more favorable for firms within an industry if ?
A. Buyer power is high
B. Supplier power is high
C. Entry threat is low
D. Substitute threat is high - There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?
A. Mutual arrangement
B. Quid Pro quo
C. Bilateral arrangement
D. common interest - Which term is used for the period of competition in which each competitor tries to cut retail prices below the others ?
A. Price competition
B. Price support
C. Price war
D. Price battle - If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?
A. decreased production
B. maintained production at the current level
C. temporarily shut down.
D. increased production - A firm owns long-lived property that is used by a firm in the Production of its income. What this property is called ?
A. Unmovable asset
B. Fixed property
C. Production line
D. Fixed asset - A monopolistically competitive firm that is incurring a loss will produce as long as the price that the firm charges is sufficient to cover ?
A. marginal costs
B. fixed costs
C. variable costs
D. advertising costs - A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A. £35
B. £15
C. £30
D. £60 - For a competitive profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm’s ?
A. supply curve of capital
B. demand curve for capital
C. production function
D. marginal cost curve - If a firm were to bid to do a turnkey operation where they would choose a building site designing a cement factory to build the plant hire construction crews assemble materials and equipment to run the new factory and turn over the finished factory ready to operate to the owners the firm would be using which of the following ?
A. Core Process products selling
B. Design Products selling
C. Reciprocal spelling
D. Systems selling - The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?
A. Rational-expectations hypothesis
B. Passive-expectations hypothesis
C. adaptive expectations hypothesis
D. lagged-expectations hypothesis.
