In a decision tree, the difference between a decision node and a terminal node i
ID: 1226926 • Letter: I
Question
In a decision tree, the difference between a decision node and a terminal node is that
A. at a decision node a decision must be made, while at a terminal node the final decision must be made.
B. at a decision node, a decision must be made while a terminal node shows the payoff.
C.at a decision node all participants make the same decision, while at a terminal node different players may make different decisions.
D.at a decision node all participants are free to make individual decisions but at a terminal node they must agree on a collective decision.
Actions of firms that are aimed at deterring entry include
A.introducing new products to fill market niches.
B.setting lower prices to keep profits at a level that makes entry less attractive.
C.advertising to create product loyalty.
D.All of the above.
Encyclopedia Britannica is an encyclopedia publisher who sells printed encyclopedias. In the 1990s, encyclopedias began to be sold electronically. What effect did electronic encyclopedias have on Encyclopedia Britannica?
Electronic encyclopedias
A.served as a new product that fills a consumer need better than printed encyclopedias did
B.served as a complement, increasing sales of electronic and printed encyclopedias.
C.resulted in the government introducing occupational licensing laws for educational materials.
D.prompted Encyclopedia Britannica to form the first cartel for encyclopedias.
E.used printed encyclopedias from Encyclopedia Britannica as a key input.
Which of the following statements is generally
true?
A.The smaller the number of firms in an industry, the greater the rivalry.
B.The larger the number of firms in an industry, the greater the rivalry.
C.Rivalry is less the larger the number of firms in an industry.
D.The degree of rivalry in an industry is largely independent of the number of firms.
A monopoly is a market structure that is characterized by
A. a single seller of a good or service that has many close substitutes.
B.a single seller of a good or service that does not have a close substitute.
C.many sellers selling differentiated products.
D.None of the above.
Using the broader definition of monopoly, in which of the following cases could we argue that Microsoft has a monopoly in computer operating systems?
A.If there are no barriers to entry in the market for computer operating systems.
B.If Apple's computer operating system and the Linux operating system were not considered close substitutes for Windows.
C.If Apple and Linux started to produce operating systems similar to Windows.
D.If Microsoft charged prices similar to those that Apple and Linux charge for their operating systems in order to compete.
A form of market structure studied by economists is monopoly.
When is a firm a monopoly, or are monopolies only theoretical concepts that do not exist?
A.Upper A firm is a monopoly if it cannot ignore the actions of all other firms
B Monopolies do not exist because just about every product has substitutes.
C.Upper A firm is a monopoly if its economic profits are not competed away in the long run
D.Monopolies do not exist because many markets have barriers to entry.
E.A firm is a monopoly if it earns economic profits at least in the short run.
In 2011, Microsoft filed a complaint with the European Commission accusing Google of taking steps to monopolize the Internet search engine business. Microsoft's primary complaint was that
A.
the European Union contracts exclusively with Google for its Internet search engine use.
B.
Google owns the Internet advertising companies that pay for ads on search engine sites, and has prohibited ads from being sold to competitors.
C.
Google was using its dominant position as an Internet search engine to exclude competitors.
D.
Google is the only Internet search engine available to Windows operating system users.
Explanation / Answer
In a decision tree, the difference between a decision node and a terminal node is that at a decision node, a decision must be made while a terminal node shows the payoff. The decision node represents decision or possible actions to be chosen by decision maker. On the other hand terminal nodes shoes the payoffs that fits the required solution or paths.