Applied Economics Finals Exam

Can different firms be interdependent with each other?

• Yes, what a single firm does can significantly affect the firms.

• No, they have their own businesses.

• No, that's not allowed.

• Yes, but that is illegal.

It deals with strategic decision making and focuses on both economics and marketing, making professional entrepreneurs precisely judge industry, policy changes, and market news.

• market

• market structures

• business

• economy

It is one of the numerous infrastructures, systems, institutions, social relations, and procedures, wherein buyers and sellers usually interact with each other to exchange goods and services.

• market

• economy

• business

• malls

It usually emerges because there is a high barrier to enter and exit in a particular market.

• business

• market

• monopoly

• economy

Do monopolies cause deadweight loss in the economy?

• Yes, because they are illegal businesses.

• Yes, because they are not price setters.

• Yes, because they can minimize their output production to put higher prices and gain more profit.

• No, because they uplift the economy.

In a monopolistic competition, can every firm set the price?

• Yes, because their products are different in their own way.

• No, because that is not allowed.

• No, because no one will buy if they increased the price.

• Yes, but that is illegal.

Is there a type of market structure wherein the market has full control over implying prices?

• Yes, but that is only if there are uniform prices that depend on the demand and supply.

• No, the market doesn't have the power to do that.

• No, different companies will protest if that happened.

• Yes, but that is illegal.

Are the participants in oligopolies price setters or takers?

• They are price setters.

• They are price takers.

• None of the above.

What do you call the market structure where many products are similar that may substitute each other since they have the same features, price and, quality?

• market

• perfect competition

• monopolistic competition

• trade

It pertains to the situation where several companies sell the same yet slightly different products.

• monopoly

• trade

• monopolistic competition

• market