Solved by verified expert :5) When there is a tendency for a particular product to fall out
favor with additional consumers because other consumers have chosen not to
purchase the product,
A) negative market feedback
occurs. B) positive market feedback occurs. C) the tit-for-tat strategy will
begin. D) the network effect will increase.
6) Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price
decreases by initiating efforts to engage in price leadership.
B) a particular product to fall out of favor with additional
consumers because other consumers have stopped purchasing the product.
C) the dominant firm in an oligopolistic industry to react to
competing firms’ price increases by decreasing the price of its own product.
D) price wars to break out in oligopolistic industries in which firms
produce products possessing characteristics that make them prone to network
effects.
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8) Positive market feedback refers to a tendency for
A) potential entrants to an oligopolistic industry to respond to
entry deterrence strategies by contemplating setting their prices above prices
established by firms already in the industry.
B) potential entrants to an oligopolistic industry to respond to
entry deterrence strategies by contemplating producing more output than the
quantities produced by firms already in the industry.
C) a particular product to come into favor with additional consumers
because other consumers have chosen to purchase the product.
D) price leaders to respond to an increase in market demand by
increasing the prices of their products.
9) A network effect exists whenever
A) a firm’s willingness to produce a particular good or service is
influenced by the costs of inputs it must utilize in order to manufacture the
item.
B) a consumer?s
willingness to purchase a particular good or service is influenced by how many
others also buy or have bought the item.
C) a firm’s willingness to purchase a particular factor of production
depends on the other types of inputs it utilizes to manufacture an item.
D) a consumer’s willingness to purchase a particular good or service
is influenced by the prices of other complementary or substitute items.
10) A situation where a consumer’s willingness to use an item
depends on how many others use it is
A) a positive-sum game.
B) a network effect.
C) price-leadership.
D) a vertical merger.
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11) When network effects are important, then an industry can
experience A) positive market feedback.
B) prince-leadership. C) a
zero-sum game. D) a vertical merger.
12) When a new product is introduced in the market, Lenny always wants
to see how popular the item becomes before he purchases it. Lenny’s behavior is
known as
A) overt collusion. B) limit-pricing. C) a network effect. D)
price leadership.
13) When a falloff in usage of a product by some consumers causes
others to stop purchasing the item there is
A) price leadership. B) negative-sum game.
C) positive market feedback.
D) negative market feedback.
14) A tendency for a good to come into favor with consumers because
other consumers have chosen to buy the item is
A) price-leadership. B) negative-sum game.
C) positive market feedback.
D) negative market feedback.
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15) Jane purchases snickle-dees only because her friends do. This is
A) price-leadership.
B) negative-sum game.
C) positive market feedback.
D) negative market feedback.
