Started on State Completed on Time taken Marks Grade Question 1Complete Mark 1.00 out of 1.00 Tuesday, 8 April 2014, 6:42 AM Finished Tuesday, 8 April 2014, 7:01 AM 18 mins 55 secs 9.00/10.00 13.50 out of a maximum of 15.00 (90%) Flag question Question text A network linking 8 users is typically Select one: a. less likely to exhibit bottlenecks than a network linking 2 users. b. less than four times as valuable as a network linking 2 users. c. more than four times as valuable as a network linking 2 users. d. four times as valuable as a network linking 2 users. Question 2 Complete Mark 1.00 out of 1.00 Flag question Question text Limit pricing is Select one: a. the act of charging a low price initially upon entering a market to gain market share. b. when an incumbent maintains a price below the monopoly price in order to prevent entry. c. a strategy used by a vertically integrated firm to raise rival's costs of inputs, while holding constant final product prices. c.00 out of 1. d. may be indirect. b. all of the of the statements associated with this question are correct. a strategy where a firm temporarily prices below its marginal costs to drive competitors out of the market. raising its rivals' costs and that controls an essential upstream input refusing to sell to other downstream firms that need the input. b. that merges with a rival firm with the intention of eliminating the rival firm's product from the market. Question 3 Complete Mark 1. that controls an essential upstream input refusing to sell to other downstream firms that need the input. Question 5 Complete Mark 1.00 Flag question Question text Network externalities Select one: a.d. Question 4 Complete Mark 1.00 out of 1. c.00 out of 1. raising its rivals' costs. d. may be direct.00 . may be positive.00 Flag question Question text Vertical foreclosure is an example of a firm Select one: a. Flag question Question text A firm that engages in predatory pricing benefits from Select one: a. none of the statements associated with this question are correct.00 out of 1. examples of positive network externalities.00 out of 1. different points in geographic or economic space linked by a network. c. having its prey stockpile its product. Question 7 Complete Mark 1.00 Flag question Question text Nodes are Select one: a. d. having deeper pockets than its prey and building a reputation for taking tough actions to drive a competitor out of the market. d. building a reputation for taking tough actions to drive a competitor out of the market. having deeper pockets than its prey. b. b. Question 6 Complete Mark 1. examples of negative network externalities. c.00 Flag question Question text . b. a way to raise a rival's fixed cost. Being the first-mover is always best. are a positive externality associated with networks. ineffective in markets with strong networks. b. c.00 Flag question Question text Bottlenecks Select one: a. Question 9 Complete Mark 0. occur only in two-way networks. b.00 out of 1. Question 8 Complete Mark 1.00 Flag question Question text Which of the following is false? Select one: a. Engaging in predatory pricing is always more profitable than permitting existing firms to remain in the market.Penetration pricing is Select one: a. occur in both one-way and two-way networks.00 out of 1. a way to raise a rival's marginal cost. c. d. a way to overcome an incumbent's first-mover advantage. . d. occur only in one-way networks. . d. to gain a critical mass of consumers by charging an initial low price.00 Flag question Question text A price-cost squeeze is tactic used Select one: a. d. All of the statements associated with this question are false. Question 10 Complete Mark 1. to prevent potential competitors from entering a market. by a vertically integrated firm to squeeze the margins of its competitors.c. forcing rivals to use more costly substitutes or exit the industry. c. by a vertically integrated firm to charge downstream rivals a prohibitive price for an essential input.00 out of 1. b. It is always more profitable to engage in limit pricing than to permit entry.