Industry market theory test

Self-examination test for the course "Theory of industrial markets"
1. What approaches to the analysis of the organization of sectoral markets do you know?
a) Macroeconomic approach
b) Microeconomic analysis approach
c) Monetarist approach
d) Systematic approach
2. What are the parameters for assessing the level of market concentration?
a) The number of sellers in the market
b) Production volume
c) Distribution of market shares of firms selling goods in this market
d) Correlation of commodity prices
3. Select indicators of concentration of sellers in the market.
a) Concentration factor
b) Herfindahl-Hirschman index
c) X-efficiency
d) Entropy index
e) Gini coefficient
f) Coefficient of variation
g) Diversification Index
4. Indicate the types of barriers to entry of firms into the industry market.
a) Non-strategic
b) Effective
c) Strategic
d) Organizational
e) Legal
5. What do effective barriers imply?
a) Full resource mobility
b) Slow entry of firms into the industry
c) Inability to enter the industry both in the short and long term
6. How important are exit barriers?
a) Create additional barriers to entry into the industry
b) Reduce the risk of managing the industry
c) Facilitate entry into the industry
7. Indicate administrative barriers.
a) Production quotas
b) Environmental standards
c) Product differentiation
d) Licensing of enterprises
e) Market capacity
8. What is product differentiation?
a) A kind of price competition among firms
b) The form of non-price competition of firms
c) Compliance with consumer preferences
9. How can the degree of product differentiation be measured?
a) Based on the cross elasticity of demand
b) Using the entropy index
c) Based on the Han and Kei index
d) Based on advertising costs
e) Using the residual demand function
f) Based on the calculation of the "price umbrella"
10. Name the models of spatial differentiation of the product.
a) Cournot model and Bertrand model
b) Stackelberg model
c) Hotelling's model and Salop's model
11. What is the Dorfman-Steiner condition?
a) The price changes depending on the purchase volume and the average cost of the buyer per unit of goods also changes
b) Each firm will charge a price equal to the competitor's price, adjusted for transportation costs
c) To maximize profits, the firm chooses such a level of advertising costs and sets a price such that the share of advertising costs in the total revenue of the firm is directly proportional to the elasticity of advertising costs and inversely proportional to the price elasticity of demand
12. What factors determine the possibility of the emergence and functioning of a dominant firm?
a) Increasing prices and limiting production
b) Mergers (acquisitions) and innovation processes in the industry
c) Increase in costs and benefits provided by the state
13. What should the dominant firm consider when developing its strategy of behavior?
a) The reaction of firms in a competitive environment
b) The number of years (experience) in the given market
c) Patented innovation
14. What determines the bargaining power of the dominant firm in the long run?
a) from the share of the dominant firm
b) from changes in the market price
c) on the number of firms capable of entering the market and their speed of entering it
15. What model analyzes the strategic interaction of firms on the principle of "leader-follower"?
a) Stackelberg model
b) Chamberlin's model
c) Cournot model
16. What is isoprophyte?
a) The reaction of the oligopolist to price changes
b) Equilibrium volume of production
c) The line of constant value of the oligopolist's profit with various combinations of the volume of output by competitors
17. What is at the heart of Bertrand's paradox?
a) The premise of differentiated products
b) The premise of the homogeneity of products
c) The premise of the limited production capacity of duopolists