Question 1

Who were the pioneers in the field of SCPP (Structure-Conduct-Performance Paradigm)?

Accepted Answer

Mason and J.S. Bain were pioneers in the development of the Structure-Conduct-Performance Paradigm (SCPP), which is a framework used in industrial organization economics to understand how market structure affects market conduct and market performance.

Question 2

What is referred to the degree of concentration within the industry?

Accepted Answer

Market concentration refers to the degree of concentration within an industry, indicating how much of the market is controlled by the top firms.

Question 3

Most commonly used indicator of concentration is

Accepted Answer

The Gini coefficient is the most commonly used indicator of concentration, especially in the context of income inequality, as it measures the inequality among values of a frequency distribution (for example, levels of income).

Question 4

Which indicator is the sum of square of ratio of firm size to industry size?

Accepted Answer

The Herfindahl Index is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. It is calculated as the sum of the squares of the market shares of each firm within the industry, effectively capturing the ratio of firm size to industry size squared.

Question 5

Less elastic the demand for monopolist's product, the degree of monopoly power would be …….,

Accepted Answer

The less elastic the demand for a monopolist's product, the more monopoly power the monopolist has. This is because with inelastic demand, consumers are less sensitive to price changes, allowing the monopolist to set higher prices without losing many sales.

Question 6

Whose index of monopoly power is given as p - mc/p?

Accepted Answer

Lerner's index of monopoly power is given by the formula (p - mc) / p, where p is the price set by the monopolist and mc is the marginal cost. This index measures the degree of market power the monopolist has by exploiting the difference between price and marginal cost relative to the price.

Question 7

Which of the factor does not determine the elasticity of a firm's product?

Accepted Answer

Transaction cost does not directly determine the elasticity of a firm's product. Elasticity is more influenced by market demand, the number of firms, and the nature of interactions in the market.

Question 8

The size of larger industry's share in total industry sales is known as:School of Distance EducationIndustrial Economics Page 2

Accepted Answer

The answer of The size of larger industry's share in...

Question 9

Backward integration is a form of ………

Accepted Answer

Backward integration is a type of vertical integration where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain.

Question 10

An agreement that unites two existing companies into one is known as …..

Accepted Answer

A merger is the process where two companies agree to combine their operations and assets to form a single entity, effectively uniting them into one company.

Question 11

What is known as the technique of discovering the optimal placement for an industry?

Accepted Answer

Location analysis is the technique used to determine the best location for an industry, considering factors like cost, infrastructure, logistics, and market access.

Question 12

Which of these is a non-geographical factor influencing an industry's location?

Accepted Answer

Capital is a non-geographical factor because it refers to the financial resources available for investment in an industry, which is not tied to a specific location.

Question 13

Industrial inertia is an example of

Accepted Answer

Industrial inertia refers to the tendency of industries to remain in their original locations even when the initial reasons for their geographical choice have ceased to be relevant. This phenomenon is influenced by non-geographical factors such as existing infrastructure, investment in facilities, and the workforce's reluctance or inability to relocate, rather than by geographical or natural factors.

Question 14

Who developed central place theory?

Accepted Answer

Central Place Theory was developed by Walter Christaller, a German geographer, in the 1930s.

Question 15

Which city is known as "Manchestor of India"?

Accepted Answer

Ahmedabad is known as the "Manchester of India" due to its extensive textile industry, which is reminiscent of Manchester in the UK.

Question 16

Which city is known as the "Silicon Valley" of India?

Accepted Answer

Bangalore is known as the "Silicon Valley" of India due to its role as the nation's leading information technology (IT) exporter.

Question 17

In which year was New Economic Policy introduced in India?

Accepted Answer

The New Economic Policy was introduced in India in 1991 to address the economic crisis and to liberalize the economy by reducing tariffs and import duties, deregulating markets, and encouraging foreign investment.

Question 18

Which was the first Iron and Steel plant in India

Accepted Answer

The first Iron and Steel plant in India is Tata Iron and Steel Company (TISCO), established in Jamshedpur in 1907.

Question 19

Time taken for an industry to set up a plant and to make it operational is called

Accepted Answer

The gestation period refers to the time taken for an industry to set up a plant and make it operational, encompassing all activities from planning to actual production.

Question 20

…………. Is the speed with which working capital completes its round

Accepted Answer

The operating cycle refers to the speed or duration it takes for a company's working capital to be used in the production process, sold as finished goods, and the proceeds from sales to be received, completing the cycle of converting cash back into goods or services.

Quiz 1: Industrial Economics: Concentration, Location, and Performance

Who were the pioneers in the field of SCPP (Structure-Conduct-Performance Paradigm) ?