Price-quality Quiz
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Here in this quiz you will get to learn about consumer price quality! Let's start and play this quiz now!
- 1.What term describes the situation when a firm earns a higher rate of economic profit than the average rate of economic profit of other firms competing within the same market?
- A.
Industry effect
- B.
Competitive advantage
- C.
Business unit effect
- D.
Competitive position
- E.
Market profitability economics
- 2.
- A.
Value creation
- B.
Competitive advantage
- C.
Consumer surplus
- D.
Maximum willingness-to-pay
- E.
Value chain
- 3.What term describes the price at which a consumer is indifferent between buying a product and going without it?
- A.
Value creation
- B.
Competitive advantage
- C.
Consumer surplus
- D.
Maximum willingness-to-pay
- E.
Value chain
- 4.
- A.
Frontier curve
- B.
Learning curve
- C.
Level curve
- D.
Implicit curve
- E.
Indifference curve
- 5.Select the letter corresponding to the best answer. For a given consumer, any price-quality combination along the indifference curve yields the _______________.
- A.
Same consumer surplus
- B.
Same maximum willingness-to-pay
- C.
High consumer surplus
- D.
Low consumer surplus
- E.
Same competitive advantage
- 6.When multiple firms' price-quality positions line uo along the same indifference curve offering a consumer the same amount of consumer surplus, what term describes the situation?
- A.
Price-quality parity
- B.
Price matching
- C.
Maximum willingness-to-pay
- D.
Consumer surplus parity
- E.
Consumer surplus
- 7.Which of the following represents producer surplus in the value creation equation, (B-P) + (P-C)?
- A.
B
- B.
P
- C.
C
- D.
B-P
- E.
P-C
- 8.Which of the following represents consumer surplus in the value creation equation, (B-P) + (P-C)?
- A.
B
- B.
P
- C.
C
- D.
B-P
- E.
P-C
- 9.Which of the following terms is a concept, developed by Michael Porter, which describes the activities within firms and across firms that add value along the way to the ultimate transacted good or service?
- A.
Five forces
- B.
Value creation
- C.
Value chain
- D.
Consumer surplus
- E.
Producer surplus
- 10.What term describes the process of using market prices of unfinished and semifinished goods to estimate the incremental value-created by distinctive parts of the value chain?
- A.
Value-added analysis
- B.
Value creation analysis
- C.
Market value analysis
- D.
Value benefit analysis
- E.
Value cost drivers
- 11.Which of the following is a capability?
- A.
Patents and trademarks
- B.
Brand-name reputation
- C.
Installed base
- D.
Organizational culture
- E.
Sourcing skills
- 12.
- A.
Brand promotion skills
- B.
Yield management capabilities
- C.
Ability to manage sourcing and procurement functions
- D.
Workers with firm-specific expertise or know-how
- E.
Ability to integrate order-taking, procurement, manufacturing and out-bound logistics
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