A. It must be involved in professional athletics
B. Every customer must be indifferent to the price they pay, and the seller must be a competitor in the market for the product
C. Every customer must be willing to pay an enormous amount for the product and the product must be a necessity
D. Every customer must want the good supplied by the best producer and the technology must exist for the best producer to supply every customer at low cost
Related Mcqs:
- There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
A. Grey market
B. Over-the counter (OTC)
C. Open market
D. Back market - If a producer has market power (can influence the price of the product in the market) then free market solutions ?
A. are equitable.
B. are efficient
C. maximize consumer surplus
D. are inefficient - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
A. downward sloping
B. perfectly inelastic
C. upward sloping
D. perfectly elastic - ________ consists of dividing a market into distinct groups of buyers on the basis of needs, characteristics or behavior who might require separate products or marketing mixes?
A. Product differentiation
B. Market segmentation
C. Market targeting
D. Market positioning - Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?
A. It must be “as seen on TV”
B. It must be free to the signaling party
C. It must be costly to the signaling party but less costly to the party with higher-quality product
D. It must be applied to an inexpensive product - Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
A. flat; steep
B. flat; flat
C. steep; flat
D. steep; steep - Given recent information about growth trends and growth potential of ethnic populations within the U.S market which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S market’s most viable segments ?
A. Hispanics and Asians
B. African Americans
C. Western Europeans
D. Middle Eastern - Which of the following market would most closely satisfy the requirements for a competitive market ?
A. electricity
B. cable television
C. cola
D. milk
E. All of these answers represent competitive markets - A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market ?
A. domestic subsidy
B. voluntary restraint agreement
C. domestic content requirement
D. tariff-rate quota - When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors?
A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination
