代做Economic Analysis II Weekly Practice MCQ 2调试R语言

Weekly Practice MCQ 2

1.    Consider an industry where learning-by-doing matters in determining production costs such the ship building or large aircraft manufacturing sectors. How the presence of learning by doing is likely to affect pricing decisions in the sector:

a)    Learning by doing will give rise to lower average costs, higher profit margins and lower prices.

b)    Learning by doing requires careful pricing decisions to enable the firm achieve

economies of scope in order to lower its average costs and increase profit margins.

c)    Learning by doing requires careful pricing decisions to enable the firm achieve

economies of scale in order to move up the experience curve, lowers its average costs and increase profit margins.

d)    Learning by doing requires careful pricing decisions at the start to gain early market

share so that the firm can rapidly climb up the experience curve, achieve economies of scale, lowers its average costs and increase profit margins.

2.    In markets where competition over standards matters such as the DVD market, government intervention to establish a dominant standard can benefit both firms and customers because

a)    Competition over standards creates market uncertainty that can lower demand, keep production volume low and prevent firms from achieving economies of scope.

b)   Competition over standards creates uncertainty about future prices that lowers demand, keeps production volume low and prevents firms from achieving scale.

c)    Competition over standards leads to uncertainty and coordination challenges. Any effort at establishing a standard will reduce uncertainty, create demand, and help firms to achieve economies of scale, which will lower average costs and can lead to lower prices.

d)   Competition over standards leads to uncertainty and coordination challenges. Any effort at establishing a standard will reduce uncertainty, create demand, and help firms to achieve economies of scale and scope, which will lower average costs and can lead to lower prices.

3.    Higher quality management practices

a)    Give rise to higher productivity by coordinating allocation of scarce resources and talents within the firm, reducing inefficiencies, and providing greater incentives for innovation.

b)   Give rise to higher productivity by coordinating allocation of scarce resources and talents within the firm, reducing inefficiencies, and lowering overall operational costs.

c)    Give rise to higher productivity by coordinating allocation of scarce resources and talents within the firm, providing greater incentives, enhancing team work and coordination. All these lower variable costs, push the AC curve downwards, and give rise to higher profit margins.

d)   Give rise to higher productivity by coordinating allocation of scarce resources and talents within the firm, providing greater incentives, enhancing team work and coordination. All these lower costs, push the AC curve downwards, and give rise to higher profit margins.

4.    Strong product differentiation in a market can lower overall productivity of the firms operating in the market because product differentiation:

a)    Creates barriers to entry, reduces competition, weakens the Darwinian selection

process, and allows inefficient firms to survive, without continuous improvement in productivity.

b)   Creates local monopolies, reduces competition, weakens the Darwinian selection

process, increases the number of firms, and allows inefficient firms to survive longer.

c)    Creates local monopolies, reduces competition, weakens the Darwinian selection

process, and allows inefficient firms to survive, without continuous improvement in productivity.

d)    Enables firms charge higher prices, which help firms survive without improvement in efficiency.