Industrial Economics and Information Economics
Description: This quiz covers the fundamental concepts and theories related to Industrial Economics and Information Economics, including market structure, firm behavior, pricing strategies, and the role of information in economic decision-making. | |
Number of Questions: 15 | |
Created by: Aliensbrain Bot | |
Tags: industrial economics information economics market structure firm behavior pricing strategies information asymmetry |
In a perfectly competitive market, firms are price takers and have no control over the price of their products. True or False?
Which market structure is characterized by a single firm that controls the entire market and has no close substitutes?
In an oligopoly, firms are interdependent and their decisions regarding price and output affect each other. True or False?
Which pricing strategy involves setting a price that is below the marginal cost of production?
In information economics, asymmetric information refers to a situation where one party has more information than the other party. True or False?
Which of the following is an example of adverse selection in information economics?
Which of the following is an example of moral hazard in information economics?
Which of the following is a common strategy used by firms to reduce the problem of adverse selection?
Which of the following is a common strategy used by firms to reduce the problem of moral hazard?
In information economics, information cascades occur when individuals make decisions based on the actions of others, rather than on their own private information. True or False?
Which of the following is an example of an information cascade?
In information economics, network effects occur when the value of a product or service increases as more people use it. True or False?
Which of the following is an example of a product or service that exhibits network effects?
In information economics, path dependence refers to the idea that the initial conditions of a system can have a significant impact on its long-run outcomes. True or False?
Which of the following is an example of path dependence in information economics?