Hidden Valley Communications,Inc

question 293

Multiple Choice

Hidden Valley Communications,Inc. ,located in a remote area of Utah,made a special device that was used in 4^th generation cell phones.After three years of local operations,the company that employed 4,000 people was planning to close its Utah operation and move the assembly offshore.Under the direction of a financial services company that financed the deal,the employees agreed to become owners of the company and continue to operate the business.The business concept that describes this arrangement is:

• A) IPO (initial public offering).
• B) LBO (leveraged buyout).
• C) EPO (equity public offering).
• D) HM (horizontal merger).

Understand the relationship between market structure, efficiency, and the allocation of resources.

Understand the concept and characteristics of monopolistic competition.

Comprehend how product differentiation impacts market structure in monopolistic competition.

Identify the implications of market structures on firm's output and pricing decisions.

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Definitions:

Shaping

A method of behavior modification by which successive approximations toward a desired behavior are reinforced, used extensively in operant conditioning.

Desired Response

The preferred or intended outcome or reaction to a specific stimulus or set of circumstances.

Intermittent Reinforcement

A conditioning schedule where rewards or punishments are given out irregularly, which can strengthen behavior.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.