10 Questions
What is a common characteristic of farming operations that have changed from small, family-run businesses?
They are large corporate enterprises
Why do many markets not achieve perfect competition?
Because the minimum efficient scale is high, allowing only a few sellers
What hinders new entrants in a market?
High startup capital requirements
What is a result of brand recognition in a market?
New entrants have high promotional expenses
What is a reason why new entrants may not be able to copy the operations of the most profitable sellers?
Economies of scope
What is the purpose of price supports and subsidies in the agriculture market?
To alter farm production decisions
What is a characteristic of a contestable market model?
There is free entry for new firms
Why do farming operations form cooperatives?
To increase market power
What is a result of economies of scope in a market?
Few sellers offer just one product
What is a consequence of high startup capital requirements in a market?
New entrants are unlikely to enter the market
This quiz covers various market competition strategies, including signaling and reputation management. It explores how firms can respond to competitors and maintain their market position.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
