Industrial Organization Prelim Exam

Which of the following is the study of the structure of firms and markets and of their interactions?

• Industrial economics

• Industrial organization .

• Introductory microeconomics

What is structure-conduct-performance approach?

• The structure of an industry depends on basic conditions,

  such as technology and demand for a product.

• Analyze the economic incentives facing individuals and firms to

  explain market phenomena.

George J. Stigler is an early proponent of this analytical

approach, believed that industrial organization marketers should use microeconomic theory

to design empirical studies of markets and of the effects of public policy.

• True

• False

Ronald H. Coase explained that a firm and a market are

alternative means of organizing economic activity.

• True

• False

___________ are the expenses of trading with others above and beyond the price,

such as the cost of writing and enforcing contracts.

• Transaction Costs

• Game Theory

• Contestable Markets

______ uses formal models to analyze conflict and

cooperation between firms and individuals.

• Transaction Costs

• Game Theory

• Contestable Market

What do you called to an organization that transforms inputs into outputs?

• Manufacturing

• Firm

• Selling

Manufacturing industries have higher employment, income and output multipliers relative to the agriculture and services sectors in the Philippines.

• True

• False

What is the main objective of the firms?

• To maximize profits.

• To sell products.

• To gain consumers.

• All of the above

What form of ownership that a business structure is owned by an individual who has full control/authority of its business?

• Sole Proprietorship

• Partnership

• Corporation