midterm

Question 1

every industry or market has (3)

Answer 1

time
product
geographic dimensions

Question 2

if your firms success or profitability is closely linked to profitability of your primary industry

Answer 2

demand and supply analysis

Question 3

movement along the demand curve indicates “quantity demanded” increased

Answer 3

shift in demand

Question 4

only one factor that affects demand

Answer 4

price

Question 5

affect demand but can control by company

Answer 5

controllable factor

Question 6

can manipulate controllable factor

Answer 6

firm

Question 7

something thet affect demand that a company cannot control

Answer 7

uncontrollable factor

Question 8

at a given price, more quantity demanded

Answer 8

demand increase

Question 9

describe the behavior of a group of seller

Answer 9

supply curve

Question 10

price at which quantity supplied equally quantity demanded

Answer 10

market equilibrium

Question 11

increase in income

Answer 11

increase in demand

Question 12

increase in price of a substitute

Answer 12

decrease in price of a complement

Question 13

describe seller in a competitive market

Answer 13

market supply

Question 14

describe buyer behavior

Answer 14

market demand

Question 15

increase/decrease in demand

Answer 15

increase/decrease in supply

Question 16

way that various industries are classified and differentiated

Answer 16

market structure

Question 17

4 types of market structure

Answer 17

perfect competition
oligopolistic market
monopolistic market
monopolistic competition

Question 18

price have fully adjusted to production cost

Answer 18

long-run equilibrium

Question 19

ability of assets to move from lower to higher valued uses

Answer 19

indifference principle

Question 20

difference in wages

Answer 20

compensating wage differentials

Question 21

firm can earn positive profit

Answer 21

monopoly

Question 22

economic perspective locates the source of advantage at the industry level

Answer 22

industrial organization

Question 23

locates it at the individual firm level

Answer 23

resource based view

Question 24

the best industries are characterized by (5)

Answer 24

low buyer power
low supplier power
low threat from substitute
low threat of entity
low level of rivalry between existing firm

Question 25

group of firm producing products

Answer 25

industry

Question 26

cmeo

Answer 26

chief managerial economics officer

Question 27

3 basic strategies

Answer 27

cost reduction product differentiation reduction in competitive intensity

Question 28

assumes that industry structure is the most important

Answer 28

industrial organization

Question 29

framework for analyzing the attractiveness of an industry

Answer 29

five forces model

Question 30

art of matching resources

Answer 30

strategy

Question 31

help domestic supplier and foreign customer

Answer 31

currency devaluation

Question 32

economies of the developed world experienced steady growth

Answer 32

great moderation

Question 33

similar to long run relationship

Answer 33

purchasing power parity

Question 34

exporters could make money by buying the good in one country

Answer 34

arbitrage

Question 35

prices determined by supply and demand

Answer 35

exchange rate

Question 36

set a range of standard price

Answer 36

price shemes

Question 37

sale of one product

Answer 37

cannibalizing

Question 38

reduce cannibalizing

Answer 38

repositioning

Question 39

lrmr

Answer 39

long run marginal revenue

Question 40

lrmc

Answer 40

long run marginal cost

Question 41

when demand is difficult to predict

Answer 41

revenue management

Question 42

minimize the expected cost

Answer 42

optimal price

Question 43

marketing tactics involved paying for space to promote a product

Answer 43

advertising

Question 44

scale strategy in which brand temporarily reduce the price

Answer 44

promotional pricing

Question 45

strategy that uses pricing to influence a customers spending

Answer 45

psychological pricing

Question 46

third degree price discrimination

Answer 46

direct price discrimination

Question 47

price discrimination is more profitable

Answer 47

low marginal cost/with less elasticity demand

Question 48

allow people in countries with higher drug

Answer 48

reimportation/ parallel trade

Question 49

we can identify members

Answer 49

direct price discrimination

Question 50

we cannot perfectly identify the two groups

Answer 50

indirect price discrimination

Question 51

tension in the law about the effects of price discrimination

Answer 51

robinson patman act