Mock MST Questions PDF

Please try out these 5 mock questions to practice for your upcoming MST. The answers are provided on the next page. I encourage you to attempt all the questions first before checking the answers to gauge your understanding effectively. **[Mock MST Questions]** **1. Which of the following best des...

Please try out these 5 mock questions to practice for your upcoming MST. The answers are provided on the next page. I encourage you to attempt all the questions first before checking the answers to gauge your understanding effectively. **[Mock MST Questions]** **1. Which of the following best describes a key feature of perfect competition?**\ A) Firms compete by heavily branding and differentiating their products.\ B) The market consists of only a few buyers and sellers.\ C) All products are identical with no variation in quality.\ D) New firms face significant obstacles when entering the market. **2. Price discrimination refers to the ability of businesses to:**\ A) Lower production costs by increasing demand.\ B) Standardize prices across all customer segments.\ C) Charge varying prices based on customers\' willingness to pay.\ D) Achieve higher profits through bulk purchasing. **3. Durable purchases contribute to customer lock-in by:**\ A) Requiring frequent contract renewals.\ B) Limiting compatibility to specific systems or equipment.\ C) Offering long-term warranties that discourage switching.\ D) Creating ongoing expenses like maintenance and consumables. **4. To reduce the risk of lock-in, buyers should:**\ A) Negotiate contracts with flexible terms and multiple options.\ B) Avoid entering long-term agreements with any supplier.\ C) Commit to a single supplier for simplicity and reliability.\ D) Focus primarily on short-term cost savings. **5. A \'light\' or \'basic\' version of a product is typically designed for:**\ A) Customers with higher income who value premium options.\ B) Customers who are highly sensitive to price.\ C) Long-term loyal customers seeking exclusive benefits.\ D) None of the above. +-----------------------------------+-----------------------------------+ | Question | Answer | +===================================+===================================+ | 1 | **C** | | | | | | All products are identical with | | | no variation in quality. | | | | | | (In perfect competition, products | | | are homogeneous and | | | indistinguishable across | | | sellers.) | +-----------------------------------+-----------------------------------+ | 2 | **C** | | | | | | Charge varying prices based on | | | customers\' willingness to pay. | | | | | | (Price discrimination involves | | | setting different prices for | | | different customer groups to | | | maximize revenue.) | +-----------------------------------+-----------------------------------+ | 3 | **D** | | | | | | Creating ongoing expenses like | | | maintenance and consumables. | | | | | | (Durable goods often require | | | associated costs that tie | | | customers to the supplier.) | +-----------------------------------+-----------------------------------+ | 4 | **A** | | | | | | Negotiate contracts with flexible | | | terms and multiple options. | | | | | | (Flexible contracts and open | | | options allow buyers to switch | | | more | +-----------------------------------+-----------------------------------+ | 5 | **B** | | | | | | Customers who are highly | | | sensitive to price. | | | | | | (A basic version often targets | | | customers who prioritize | | | affordability.) | +-----------------------------------+-----------------------------------+