.15.objective.

Question 1 To maximize sales revenue a firm should produce where: a) Marginal cost is zero b) Marginal revenue is maximized c) Marginal revenue is zero d) Marginal revenue equals marginal cost Question 2 To maximize growth without making a loss a firm should produce the highest output where: a) Average revenue equals marginal cost b) Average revenue equals average cost c) Marginal revenue equals marginal cost d) Average cost equals marginal cost Question 3 If one car company takes over another car company this is an example of which type of integration? a) Vertical b) Horizontal c) Conglomerate d) Literal Question 4 If a car company takes over a clothes business this is an example of which type of integration? a) Vertical b) Horizontal c) Conglomerate d) Literal Question 5 Acquisition and merger are examples of: a) Internal growth b) External growth c) Organic growth d) Underlying growth Question 6 If firms join together to set prices and quantities this is known as what? a) Interaction b) Conglomerate c) Collusion d) Integration Question 7 In the Ansoff matrix a strategy focusing on new products and new markets is known as: a) New product development b) Diversification c) Market development d) Market penetration Question 8 Satisficing occurs when a) Profits are maximized b) Profit are minimized c) A business meets the different needs of stakeholders and makes a satisfactory level of profits d) Only normal profits are made Question 9 If a business becomes too big through mergers and takeovers it can experience cost problems due to a) Economies of scale b) Diseconomies of scale c) The minimum efficient of scale d) Synergy Question 10 An example of backward vertical integration is: a) A supermarket buying a farm b) A supermarket buying another supermarket c) A supermarket buying an insurance company d) A supermarket buying a car rental business