Midterm Examination - Managerial Economics

A farmer sells his produce at a local public market where many sellers offer identical products, and buyers can freely compare prices. Which market structure is this?

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition

A single company controls the entire supply of tap water in a city and sets prices without competition. This is an example of:

• Oligopoly

• Perfect competition

• Monopolistic competition

• Monopoly

A smartphone market has three large firms dominating sales, with each reacting to the pricing and marketing moves of the others. This describes:

• Monopoly

• Oligopoly

• Perfect competition

• Monopsony

A small bakery differentiates itself by offering unique bread flavors not found elsewhere in town, even if other bakeries exist. This is an example of:

• Monopoly

• Monopolistic competition

• Monopolistic competition

• Oligopoly

The entry of a foreign fast-food chain in the Philippines increases competition for local brands. This is an example of:

• Economic globalization impact

• Government regulation

• Market exit

• Technological change

In a global recession, consumers reduce spending on luxury goods but maintain purchases of essential items. This behavior reflects:

• Income elasticity of demand

• Cross elasticity of demand

• Price elasticity of demand

• Market failure

A price drop in chicken causes a decrease in demand for pork. This is an example of:

• Supply elasticity

• Price elasticity

• Income elasticity

• Cross elasticity

During a pandemic, the government imposes price ceilings on essential goods. This is an example of:

• Price discrimination

• Price control

• Market intervention

• Market deregulation

In an agricultural market, bumper harvests lead to an oversupply of vegetables, causing prices to drop significantly. This situation illustrates:

• Supply shock

• Market monopoly

• Price control

• Demand shift

A growing number of freelancers sell graphic design services online to clients abroad. This reflects:

• Globalized labor markets

• Oligopolistic control

• Local monopolies

• Barriers to entry