PSU COMM 380 EXAM 2
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
User [Date] [Course title]
, Contact for further consultation
1. definition of a MARKET Answer: a market is a system where buyers and sellers interact
to exchange goods, services, or resources at mutually agreed prices
2. two dimensions when defining a market Answer: product or service category
(what is being sold) geographic area (where its being sold)
3. IO model Answer: stand for industrial organization
posits that the structure of an industry determines behavior, which in turn determines performance
4. SCP paradigm Answer: Structure-conduct-performance
premise r: market structure attects firm conduct, which influences market performance
5. three criteria that determines market structure Answer: 1. number of
firms
2. market share distribution
3. product ditterentiation
6. concentration Answer: high concentration: few firms dominate;
less competition low concentration Answer: many firms compete;
more competitive market
7. CR4 Answer: high concentration
Answer: CR4 = or > 50% or CR8 = or
2/
10
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
User [Date] [Course title]
, Contact for further consultation
1. definition of a MARKET Answer: a market is a system where buyers and sellers interact
to exchange goods, services, or resources at mutually agreed prices
2. two dimensions when defining a market Answer: product or service category
(what is being sold) geographic area (where its being sold)
3. IO model Answer: stand for industrial organization
posits that the structure of an industry determines behavior, which in turn determines performance
4. SCP paradigm Answer: Structure-conduct-performance
premise r: market structure attects firm conduct, which influences market performance
5. three criteria that determines market structure Answer: 1. number of
firms
2. market share distribution
3. product ditterentiation
6. concentration Answer: high concentration: few firms dominate;
less competition low concentration Answer: many firms compete;
more competitive market
7. CR4 Answer: high concentration
Answer: CR4 = or > 50% or CR8 = or
2/
10
