Question For Chapter 2

Question 1

A market model is a prescription of how a market ought to perform.

True/False

Answer 1

False

Question 2

One of the important elements of market structure is the degree (if any) of product differentiation.

True/false

Answer 2

True

Question 3

The marketing of differential foods by processors is quite different from the marketing of commodities by farmers.
True/False

Answer 3

True

Question 4

Micro marketing is more complex for the manager of a firm in perfect competition rather than in oligopolistic competition.
True/False

Answer 4

False

Question 5

The power to be a price maker guarantees the power to make profits.
True/ False

Answer 5

True

Question 6

Perfect competition involves many buyers and sellers of a homogenous commodity.
True/False

Answer 6

False

Question 7

In terms of the models in this chapter, the restaurant industry is most like perfect competition.
True/False

Answer 7

False

Question 8

Firms in monopolistic competition have differences in products marketed but not in prices.
True/False

Answer 8

False

Question 9

A good way to decide high competitive model applies on a real-world marketing problem is to count the number of firms in that industry in the nation.
True/False

Answer 9

False

Question 10

A monopoly is unregulated by the U.S. justice dept.

true/ False

Answer 10

False

Question 11

Which one of the following is NOT true of a perfect competition marketing model? 
A. Sells of differentiated products 
B. Entry is fairly easy 
C. There are many firms or businesses 
D. Is a price taker

Answer 11

A

Question 12

The law downward sloping demand states.
A. Food spending changes in the opposite direction as income changes.
B. When demand rises, supply falls
C. Quantity response to price is elastic
D. A larger quantity is demanded at a lower price than at a higher price, all other things held constant
E. None of the above

Answer 12

D

Question 13

It is true that :
A. The power to be a price maker does not guarantee profits
B. Perfect competition involves many buyers and many sellers of homogenous commodity
C. Both of the above are true
D. None of the above are true

Answer 13

D

Question 14

A price taker: 
A. Is somebody like a soybean grower 
B. Is somebody like a General Motors 
C. Occasionally engages in price wars 
D. Is somebody like a fast food restaurant chain

Answer 14

A