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.Management Sciences
Category: Applied Microeconomics
Sales staff are keen to sell extended warranties because ?
A. extended warranties offer value for money.
B. the cost of repair will usually exceed the cost of the warranty
C. they are paid commission on each extended warranty they sell.
D. They are concerned about customer satisfaction.
Spending on motoring as a % of household expenditure in the UK shows that motoring is ?
A. Environmentally damaging
B. an inferior good
C. a potential public good
D. a superior good
The theory of the second best suggests that in the absence of perfect competition a privatized industry should charge a price of ?
A. p = Z
B. P = MC + Z
C. p = MC
D. P = MC – Z
In the UK, electricity industry parts are a ____ and other parts are ___ ?
A. nationalized; privatized
B. natural monopoly; potentially competitive
C. cartel; a sellers’ market
D. monopolistic competition duopoly
Evidence suggests that the price elasticity of demand for motoring is ?
A. absolutely inelastic
B. Unitarily elastic
C. Elastic
D. inelastic
A merger between a paper producer and a book publisher is an example of?
A. a conglomerate merger.
B. a horizontal merger
C. a complementary products merger.
D. a vertical merger
Antimonopoly legislation is undertaken to ____ competition and market regulation is undertaken to ____ competition ?
A. restrict; promote
B. restrict; restrict
C. promote; promote
D. promote; restrict
Antimonopoly laws are based on the proposition that ?
A. increasing market power is the best way to achieve efficiency.
B. competition is the best way to achieve efficiency.
C. public ownership is the best way to achieve efficiency
D. regulation is the best way to achieve efficiency.
In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
A. deregulation
B. making markets contestable
C. natural monopoly.
D. cross-subsidization.
A conglomerate merger is a merger of ?
A. firms producing the same product
B. firms at various stages in production process.
C. firm producing complementary products
D. firms producing unrelated products.
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