exam 1 - 662 ZA
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Kansas State University *
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Economics
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Apr 3, 2024
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Competition today is no longer between firms; it is between the supply chains of those firms. Group of answer choices True False Flag question: Question 3 Question 31 pts P2P process managing the day-to-
day activities of buying products and/or services does not directly contribute to creating the competitive advantage of a firm. Group of answer choices True False Flag question: Question 4 Question 41 pts Fixed-
price contracts are generally applicable when the goods or services procured are expensive, complex, and important to the purchasing party. Group of answer choices True False Flag question: Question 5 Question 51 pts A central premise of exponential smoothing is that more recent data is less indicative of the future than data from the distant past. Group of answer choices True False Flag question: Question 6 Question 61 pts In exponential smoothing, it is desirable to use a higher smoothing constant when forecasting demand for a product experiencing high growth. Group of answer choices True False Flag question: Question 7 Question 71 pts The biggest difference between linear regression method (in the context of time-series analysis) and causal relationship forecasting is that the latter uses independent variables other than time to predict future demand. Group of answer choices True False Flag question: Question 8 Question 81 pts Usually a higher-level item (of which it is part) has an independent demand. Group of answer choices True False Flag question: Question 9 Question 91 pts In a fixed-time period model (P-Model), the remaining inventories must be continually monitored and tracked. Group of answer choices True False Flag question: Question 10 Question 101 pts We should use the single-period model when we are making a one-time purchase of an item. Group of answer choices True False Flag question: Question 11 Question 111 pts ______________ is the strategic part of buying a good or a service whereas purchasing is considered as the fulfillment of orders to secure daily’s operations. Group of answer choices Procurement Logistics Supply management Purchasing Flag question: Question 12 Question 121 pts Which of the following is not the element of purchasing cycle? Group of answer choices Identifying user requirements Evaluating existing and potential suppliers Ensuring payment occurs promptly Driving continuous improvement Flag question: Question 13 Question 131 pts All of the following are required elements in a purchase requisition/SoW EXCEPT _________________. Group of answer choices estimated unit cost operating account to be charged date required identification and approval of a supplier by the end user Flag question: Question 14 Question 141 pts ________________ is a situation that occurs when sellers contact and attempt to sell directly to end users (i.e. purchasing's internal customers). Group of answer choices Insourcing Maverick spending Direct sourcing Bidding Flag question: Question 15 Question 151 pts All of the following are conditions under which competitive bidding is effective EXCEPT ________________. Group of answer choices volume is high enough the buyer has a preferred supplier for the item the specifications or requirements are clear to the seller adequate time is available for suppliers to evaluate the RFQ Flag question: Question 16 Question 161 pts While similar in concept, blanket purchase orders are typically used more often for ________________ purchases, while longer-term purchase agreements are used for ________________ purchases. Group of answer choices unique –
routine complex –
simple lower-value –
higher-value higher-value –
lower-value Flag question: Question 17 Question 171 pts A company wants to forecast demand using the simple moving average. If the company uses three prior yearly sales values (i.e., year 2011 = 130, year 2012 = 110, and year 2013 =160), which of the following is the simple moving average forecast for year 2014? Group of answer choices 100.5 122.5 133.3 135.6 Flag question: Question 18 Question 181 pts A company wants to forecast demand using the weighted moving average. If the company uses three prior yearly sales values (i.e., year 2011 = 160, year 2012 = 140 and year 2013 = 170), and we want to weight year 2011 at 30%, year 2012 at 30% and year 2013 at 40%, which of the following is the weighted moving average forecast for year 2014? Group of answer choices 170 168 158 152 Flag question: Question 19 Question 191 pts Historical demand for a product is as follows: Month Demand April 60 May 55 June 75 July 60 August 80
September 75 What is a forecast for October using simple linear regression? Group of answer choices 65.34 71.49 78.20 81.01 Flag question: Question 20 Question 201 pts As a consultant, Dihn has been asked to generate a unit demand forecast for a product for year 2014 using exponential smoothing. The actual demand in year 2013 was 750. The forecast demand in year 2013 was 960. Using this data and a smoothing constant alpha of 0.3, which of the following is the resulting year 2014 forecast value? Group of answer choices 813 897 1,023 1,120 Flag question: Question 21 Question 211 pts Refer to the following paragraph(s) for Qs20-21: Allen Industries has a simple forecasting model: Take the actual demand for the same month last year and divide that by the number of fractional weeks in that month. This gives the average weekly demand for that month. This weekly average is used as the weekly forecast for the same month this year. This weekly average is used as the weekly forecast for the same month this year. This technique was used to forecast 8 weeks for this year, which are shown below along with the actual demand that occurred. The following 8 weeks show the forecast (based on last year) and the demand that actually occurred: Week Forecast Demand Actual Demand Week Forecast Demand Actual Demand 1 140 137 5 140 180 2 140 133 6 150 170 3 140 150 7 150 185 4 140 160 8 150 205 Q20. What is the Mean Absolute Deviation (MAD) of forecast errors? Group of answer choices 19.42 20.21 21.83 23.75 Flag question: Question 22 Question 221 pts What is the tracking signal using the Running Sum of Forecast Errors (RSFE) for month 8? Group of answer choices 4.95 5.53 6.12 7.16 Flag question: Question 23 Question 231 pts A company has actual unit demand for three consecutive years of 124, 126, and 135. The respective forecasts for the same three years are 120, 120, and 130. Which of the following is the resulting MAD value that can be computed from this data? Group of answer choices 3 5 15 123 Flag question: Question 24 Question 241 pts Assume that in past years, Brasel & Co. sold an average of 1,000 units of a particular product line each year. On the average, 200 units were sold in the spring, 350 in the summer, 300 in the fall, and 150 in the winter. What is the seasonal factor (or index) for the fall? Season Past Sales Spring 200 Summer 350 Fall 300 Winter 150 Group of answer choices 0.6 0.8 1.2 1.4 Flag question: Question 25 Question 251 pts Refer to the following paragraph(s) for Qs24-25: Here are quarterly data for the past two years to prepare a forecast for the upcoming year using decomposition: Period Actual Period Actual 1 300 5 416 2 540 6 760 3 885 7 1,191 4 580 8 760 Q24. What is a final forecast for period 10 using? Group of answer choices 452.0 858.7 963.4 1,431.9 Flag question: Question 26 Question 261 pts What is a final forecast for period 12 using? Group of answer choices 452.0 858.7 963.4 1,431.9 Flag question: Question 27 Question 271 pts A company currently has 200 units of a product on hand that it orders every 2 weeks when the salesperson visits the premises. Demand for the product averages 20 units per day with a stand deviation of 5 units. Lead time for the product to arrive is 7 days. Management has a goal of a 95% probability of not seeking out for this product. The salesperson is due to come in late this afternoon when 180 units are left in stock (assuming that 20 are sold today). How many units should be ordered? Group of answer choices 178 units 278 units 378 units 478 units Flag question: Question 28 Question 281 pts Solve the following newsvendor problem. What is the optimal order quantity where purchase cost=$15, selling price=$25, and salvage value=$10? Quantity Probability 1 0.2 2 0.1 3 0.1 4 0.2 5 0.3 6 0.1 Group of answer choices 3 4 5 6 Flag question: Question 29 Question 291 pts If annual demand is 50,000 units, the ordering cost is $25 per order and the holding cost is $5 per unit per year, which of the following is the optimal order quantity using the fixed order quantity model? Group of answer choices 707 634 500 141 Flag question: Question 30 Question 301 pts A company is planning for its financing needs and uses the basic fixed order quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150? Group of answer choices $1,501,600 $1,498,200 $500,687 $499,313
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Related Questions
(Dominant Firm with Fringe Competition)
The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively.
The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240.
If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd
b. What is the equilibrium price and the equilibrium quantity for the dominant firm? Show your answer mathematically and graphically.
c. In that equilibrium, what is the supply of competitive fringes? How many total products are there on the market? What is the market share of the dominant company and the fringe company? Show your answer mathematically and graphically
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(Dominant Firm with Fringe Competition)
The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively.
The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240.
If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd
a. What is the minimum price level required by the competitive fringe to offer output? At what price level will the fringe company supply the entire market?
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(Dominant Firm with Fringe Competition)
The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively.
The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240.
If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd
d. If the dominant company wants to limit competition from fringes, what can the dominant company do? What is the name of this strategy?
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A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms.
Total market demand: QALL=300 – (2.5) P
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2) QD.
a) What is the equilibrium price set by the dominant firm?
b) How much will the dominant firm supply to the market at the price found in question (a)?
Show the answers graphically
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Assume the market shares of the six largest firms in an industry are 15 percent each. The six-firm concentration ratio would indicate that the industry is highly concentrated, while the Herfindahl- Hirschman Index would not.
True OR False?
If the inputs to a production process are perfect substitutes and the marginal rate of technical substitution is equal to the ratio of the prices of the two inputs, the firm can choose from a virtually infinite array of combinations of the two inputs to minimize the costs of producing a given level of output.
True OR False?
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A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms.
Total market demand: QALL=300 – (2.5) P
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2) QD.
a) What is the equilibrium price set by the dominant firm?
b) How much will the competitive fringe supply to the market at the price found in question (a)?
Show the answers graphically.
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Characteristics of competitive markets
The competitive market model depends on the following three core assumptions:
1.
There must be many buyers and sellers—a few players can't dominate the market.
2.
Firms must produce an identical product—buyers must regard all sellers' products as equivalent.
3.
Firms and resources must be fully mobile, allowing free entry into and exit from the industry.
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imperfectly competitive
monopoly
oligopoly
perfectly competitive
none of the above
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A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms.
Total market demand: QALL=300 – (2.5) P
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2) QD.
a) What is the equilibrium price set by the dominant firm?
b) Calculate the total market demand at the price found in question (a).
Show the answers graphically.
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Total market demand: QALL=300 – (2.5) P
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2) QD.
a) What is the equilibrium price set by the dominant firm?
b) Calculate the total market demand at the price found in question (a).
c) How much will the competitive fringe supply to the market at the price found in question (a)?
d) How much will the dominant firm supply to the market at the price found in question (a)?
Show the answers graphically.
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Total Fixed Costs: TFC = 60
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Marginal Costs: MC(Q) = 17Q
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a)
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b)
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d)
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A.
setting prices to generate a reasonable rate of return on investment
B.
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C.
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D.
one-time-only special order pricing that would result in achieving the break-even point
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QUESTION 47
Cartels are unstable due to all of the following factors except which one?
incentive for each firm to serve as the whistle-blower
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trade groups
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QUESTION 48
Under the merger guidelines written by the DOJ and FTC a merger may not be challenge if:
There is significant foreign competition
The firms involved have monetary problems
There is an emergence of new technology
All of the statements associated with this question are correct
QUESTION 49
The existence of any consumer surplus in the market suggests that all of the following practices are possible in the market except which one?
first-degree price discrimination
a single price is charged to all consumers
second-degree price discrimination
third-degree price discrimination
QUESTION 50
In peak-load pricing, the short-run marginal cost is equal to the marginal cost of providing capacity.
True
False.
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Total market demand: QALL=300 – (2.5) P
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2)QD.
a) What is the equilibrium price set by the dominant firm? Calculate the total market demand at the price found.
b) How much will the competitive fringe supply to the market at the price found in question 2(a)?
c) How much will the dominant firm supply to the market at the price found in question 2(a)?
d) Show the above answers graphically.
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A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms.
Total market demand: QALL=300 – (2.5) P
The competitive fringe supply function (total): QF=2P-12
The dominant firms marginal cost function: MC = 12 + (1⁄2) QD.
a) What is the equilibrium price set by the dominant firm? ANSWER: P= 55.82
b) Calculate the total market demand at the price found in question 2(a). ANSWER: QALL= 160.45
c) How much will the dominant firm supply to the market at the price found in question 2(a)?
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Group of answer choices
Demand for the product is probably elastic
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There is probably a barrier to entry preventing new firms from competing
Supply must be inelastic
Government intervention in this market is probably limited
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