Question 1

Power Circuit, a utility company that operates in Northeast U.S.is required to get approval from state regulatory agencies before increasing the price of its service because it is a(n)______________ company.

Accepted Answer

Power Circuit is a monopoly company, meaning it is the only provider of the service in the region. As a result, state regulatory agencies oversee its operations and require approval for any price increase to protect consumers from potential abuse of market power.

Question 2

A(n)_________________ differs from other industry structures in that there are more companies in the industry manufacturing products that are standardized (steel)or differentiated (automobiles).

Accepted Answer

The answer of A(n)_________________ differs from other industry structures in...

Question 3

When a company creates a new market by understanding its competitors and listening to the market, it is called __________________.

Accepted Answer

When a company understands its competitors and listens to the market, it is adopting a customer orientation approach to new market creation. This involves identifying the needs and preferences of potential customers and tailoring products or services to meet those needs, rather than simply focusing on maximizing market share or optimizing operations. A customer orientation approach can help companies create new markets based on customer demand, which can be more sustainable and profitable in the long run.

Question 4

When all major airlines were suffering because of environmental and competitive issues, Southwest thrived because __________________.

Accepted Answer

Southwest Airlines thrived by studying its competitors and implementing new strategies to strengthen its position, allowing it to adapt and succeed despite challenges faced by other airlines.

Question 5

The degree of competition is very high among a small group of major competitors in a ___________.

Accepted Answer

The answer of The degree of competition is very high...

Question 6

A(n)_____________ exists when a market is controlled by a single company offering one set of products.

Accepted Answer

A monopoly exists when a market is dominated by a single company offering a unique set of products or services. This company has the power to control prices without fear of competition since there are no close substitutes available.

Question 7

In an oligopoly, products that are different allow you to create perceived differences based on all of the following except _____________.

Accepted Answer

Savings are not a product attribute but rather a pricing strategy. Therefore, it is not a factor that contributes to creating perceived differences among products in an oligopoly. The other options listed (quality, features, service, and performance) are all product attributes that can be used to differentiate products in an oligopoly market.

Question 8

The merger between XM and Sirius Satellite Radios required approval from the Justice Department because it was argued that the merger would create a(n)___________.

Accepted Answer

The term "monopoly" refers to a market structure where there is only one supplier of a particular product or service, giving them complete control over the market. The potential merger between XM and Sirius Satellite Radios had the potential to create a monopoly in the satellite radio industry, hence the need for approval from the Justice Department.

Question 9

Robinson Steelco is a steel company offering standardized products to its customers.Robinson has found it difficult to break out and charge a premium price for its products.This is an example of a(n)______________.

Accepted Answer

The answer of Robinson Steelco is a steel company offering...

Question 10

In a pure competition, there are ___________ competitors.

Accepted Answer

In a pure competition, there are many competitors, all producing the same product with no differentiation.

Question 11

Samantha Wilson, Marketing Manager for CHEP U.S.A., described CHEP's direct competitors as other organizations that have similar resources, but pointed out that CHEP's competitive advantages are _________________.

Accepted Answer

Samantha Wilson specifically mentions CHEP's global product range and geographical reach as their competitive advantage, distinguishing them from other organizations with similar resources.

Question 12

When a manufacturer starts to open stores to directly reach customers, the manufacturer is integrating _____________ on the supply chain.

Accepted Answer

When a manufacturer opens stores to directly reach customers, it is moving forward on the supply chain, as it is closer to the end-consumer. Forward integration involves a company taking control of the distribution and/or retailing of its products, whereas backward integration involves a company taking control of its suppliers. The options C and D are irrelevant, and option A is incorrect as opening stores is not an example of backward integration. Therefore, the correct answer is B.

Question 13

In a monopoly there are _____ competitors.

Accepted Answer

In a monopoly, there are no competitors because a single firm dominates the entire market for a particular product or service.

Question 14

A(n)_________________ exists when many companies offer unique products in different market segments.

Accepted Answer

Monopolistic competition exists when many companies offer unique products in different market segments. This means that while companies may have some degree of control over the price of their products, they still face competition from other companies in the same market. A monopoly exists when one company has complete control over a market, while an oligopoly exists when a small number of companies dominate a market. Pure competition exists when many companies offer the same product without any differentiation.

Question 15

You and your friends want to go to dinner tonight.While texting back and forth you narrow down the choices to Chinese or Italian and then to Italian.Finally you choose Café Romana, because of its authentic dishes and excellent staff.Throughout your decision making process, you were analyzing competitors in a ___________.

Accepted Answer

Monopolistic competition refers to a market structure in which firms compete based on differentiated products. In this scenario, the decision-making process involves comparing and contrasting the offerings of different restaurants to determine the best fit for their preferences. This signifies that they were considering differentiated products from various restaurants, which is characteristic of monopolistic competition.

Question 16

In an oligopoly there are typically ___________ competitors.

Accepted Answer

An oligopoly refers to a market structure in which there are only a few dominant competing firms. The exact number of firms can vary, but typically there are 2-3 significant competitors in the market. Therefore, option C is the best choice. Options A and B are incorrect as they suggest that there is either no competition or only one other competitor, which is not common in an oligopoly. Options D and E suggest that there are too many competitors, which would refer to a more competitive market structure such as monopolistic competition or perfect competition.

Question 17

In a monopolistic competition, there are ___________ competitors.

Accepted Answer

The answer of In a monopolistic competition, there are ___________...

Question 18

All of the following are factors that affect an industry EXCEPT _____________.

Accepted Answer

The answer of All of the following are factors that...

Question 19

Monopolies differ from other market environments in that _____________.

Accepted Answer

Monopolies are characterized by a single company offering a unique product with no direct competitors, and they often have significant market power that can negatively impact consumers.

Question 20

When products in an oligopoly are different, it is possible to have _____________ price variability.

Accepted Answer

When products in an oligopoly are different, there is greater price variability as each producer tries to differentiate its product and capture a larger market share. This can result in frequent price changes, discounts, and promotions to attract and retain customers.

Quiz 6: Understanding Competitors: Analysis to Action

Power Circuit, a utility company that operates in Northeast U.S.is required to get approval from state regulatory agencies before increasing the price of its service because it is a(n) ______________ company.

A(n) _________________ differs from other industry structures in that there are more companies in the industry manufacturing products that are standardized (steel) or differentiated (automobiles) .