COMM 380 PSU EXAM 2
Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded
A+
[Document subtitle]
User [Date] [Course title]
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1. definition of a market Answer:
2. Two dimensions you need to consider when defining a market
Answer: Product markets Product types (tv, radio, podcasts, social media, etc)
Geographic markets
Electronic media firms typically operate in specific geographic markets
International
National
Local
Regional
3. IO model - What IO stands for - The key premise of the IO model
(i.e., what the theory posits?) Answer: Industrial organization (IO) model
-Suggests that a firm's external environment influences its strategic choices
-Studies the structure of markets where firms compete against one another
4. SCP paradigm (What SCP stands for, the premise of the SCP
paradigm) Answer: The IO model is also referred to as the SCP model (structure, conduct,
performance)
5. Three criteria that determine the structure of a market Answer: 1.
2/
22
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Concentration
2. Ditterentiation among the products ottered
3. barriers to entry
6. Concentration
What high market concentration means - What low market
concentration means Answer: The degree to which the largest companies in the same
product and geographic market control the economic activities in that market.
Based on analysis of Answer:
Revenues
Audience
(number of subscribers, tv viewership)
Highly concentrated markets Answer:
-A few firms with great market power
-High barriers to entry in high concentrated markets
3/
22
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:
2. Two dimensions you need to consider when defining a market
Answer: Product markets Product types (tv, radio, podcasts, social media, etc)
Geographic markets
Electronic media firms typically operate in specific geographic markets
International
National
Local
Regional
3. IO model - What IO stands for - The key premise of the IO model
(i.e., what the theory posits?) Answer: Industrial organization (IO) model
-Suggests that a firm's external environment influences its strategic choices
-Studies the structure of markets where firms compete against one another
4. SCP paradigm (What SCP stands for, the premise of the SCP
paradigm) Answer: The IO model is also referred to as the SCP model (structure, conduct,
performance)
5. Three criteria that determine the structure of a market Answer: 1.
2/
22
, Contact for further consultation
Concentration
2. Ditterentiation among the products ottered
3. barriers to entry
6. Concentration
What high market concentration means - What low market
concentration means Answer: The degree to which the largest companies in the same
product and geographic market control the economic activities in that market.
Based on analysis of Answer:
Revenues
Audience
(number of subscribers, tv viewership)
Highly concentrated markets Answer:
-A few firms with great market power
-High barriers to entry in high concentrated markets
3/
22
