Chapter 8 Quiz
Chapter 8 Quiz 1. If two small perfectly competitive firm merge, the merged firm will be a price taker.
2. Which of the following factors affect vertical integration of firms? The transaction cost at each stage of production.
3. Under a horizontal merger the assets of two firms that operate in the same market are put under a single ownership.
4. Which one of these is an example of a onetime investment made by a seller to reduce the transaction cost on all units.
5. Suppose the cost of producing cellular phones declines from $25 to $20. If buyer’s valuations remains fixed at $30, the transaction would create 5 more economic value
6. Which of the following is considered per se illegal under the U.S antitrust …show more content…
| | | | | * Question 11
2 out of 2 points | | | Which of the following exemplifies an intangible durable strategy used by firms to prevent competition?Answer | | | | | Selected Answer: | Using brand name or trademark as a reflection of product quality | | | | | * Question 12
2 out of 2 points | | | Which of the following is considered per se illegal under the U.S. antitrust law?Answer | | | | | Selected Answer: | An agreement to fix prices of commodities. | | | | | * Question 13
2 out of 2 points | | | Suppose the cost of producing cellular phones declines from $25 to $20. If buyers’ valuations remain fixed at $30, the transaction would create _____ more economic value.Answer | | | | | Selected Answer: | $5 | | | | | * Question 14
2 out of 2 points | | | If two small perfectly competitive firms merge, the merged firm will be:Answer | | | | | Selected Answer: | a price-taker. | | | | | * Question 15
2 out of 2
2. Which of the following factors affect vertical integration of firms? The transaction cost at each stage of production.
3. Under a horizontal merger the assets of two firms that operate in the same market are put under a single ownership.
4. Which one of these is an example of a onetime investment made by a seller to reduce the transaction cost on all units.
5. Suppose the cost of producing cellular phones declines from $25 to $20. If buyer’s valuations remains fixed at $30, the transaction would create 5 more economic value
6. Which of the following is considered per se illegal under the U.S antitrust …show more content…
| | | | | * Question 11
2 out of 2 points | | | Which of the following exemplifies an intangible durable strategy used by firms to prevent competition?Answer | | | | | Selected Answer: | Using brand name or trademark as a reflection of product quality | | | | | * Question 12
2 out of 2 points | | | Which of the following is considered per se illegal under the U.S. antitrust law?Answer | | | | | Selected Answer: | An agreement to fix prices of commodities. | | | | | * Question 13
2 out of 2 points | | | Suppose the cost of producing cellular phones declines from $25 to $20. If buyers’ valuations remain fixed at $30, the transaction would create _____ more economic value.Answer | | | | | Selected Answer: | $5 | | | | | * Question 14
2 out of 2 points | | | If two small perfectly competitive firms merge, the merged firm will be:Answer | | | | | Selected Answer: | a price-taker. | | | | | * Question 15
2 out of 2