AGEC 440 Exam 2 Study Guide 2026 | Complete Review, Practice
Questions & Exam Prep
Industrial organization economics was a response to which of the following market conditions?
a. markets are increasingly competitive
b. markets are increasingly concentrated
c. markets are increasingly dynamic
d. markets are increasingly differentiated
e. markets are increasingly mature - correct answer ✔✔B
The Industrial organizational economics approach explains the performance of
a. A subset of firms in an industry
b. An industry
c. A firm
d. A vertical or value chain of interconnected industries (i.e. farm to fork)
e. Firms that produce different products in an industry - correct answer ✔✔B
Industry performance is defined by:
a. the assets and resources of a firm
b. Industry Price
c. a firm's competitive advantage
d. the success of an industry in producing benefits to consumers (and producers)
e. B and D - correct answer ✔✔E
, A firm that decides to implement a prince is an example that best illustrates the following
component of the S-C-P paradigm
a. basic conditions of the market
b. conduct
c. structure
d. performance
e. B and D - correct answer ✔✔B
If there are increasing barriers to entry or a high cost of entering the market, the number of
players in the market will
a. increase and thus driving up market prices
b. increase and thus reducing concentration
c. decrease and thus increasing concentration
d. no effect
e. A and D - correct answer ✔✔C
For a highly competitive market, the Structure of the industry is described by
a. the market demand elasticity
b. a large demand elasticity facing a group of firms
c. a large supply elasticity for a given firm
d. a large number of players
e. price taking behaviors - correct answer ✔✔D
Questions & Exam Prep
Industrial organization economics was a response to which of the following market conditions?
a. markets are increasingly competitive
b. markets are increasingly concentrated
c. markets are increasingly dynamic
d. markets are increasingly differentiated
e. markets are increasingly mature - correct answer ✔✔B
The Industrial organizational economics approach explains the performance of
a. A subset of firms in an industry
b. An industry
c. A firm
d. A vertical or value chain of interconnected industries (i.e. farm to fork)
e. Firms that produce different products in an industry - correct answer ✔✔B
Industry performance is defined by:
a. the assets and resources of a firm
b. Industry Price
c. a firm's competitive advantage
d. the success of an industry in producing benefits to consumers (and producers)
e. B and D - correct answer ✔✔E
, A firm that decides to implement a prince is an example that best illustrates the following
component of the S-C-P paradigm
a. basic conditions of the market
b. conduct
c. structure
d. performance
e. B and D - correct answer ✔✔B
If there are increasing barriers to entry or a high cost of entering the market, the number of
players in the market will
a. increase and thus driving up market prices
b. increase and thus reducing concentration
c. decrease and thus increasing concentration
d. no effect
e. A and D - correct answer ✔✔C
For a highly competitive market, the Structure of the industry is described by
a. the market demand elasticity
b. a large demand elasticity facing a group of firms
c. a large supply elasticity for a given firm
d. a large number of players
e. price taking behaviors - correct answer ✔✔D
