In a Bid to Expand Its Business and Gain Cost

question 71

Multiple Choice

In a bid to expand its business and gain cost advantages, Omega Inc. has established several merchandising outlets in different locations. All the outlets share a good network and are interconnected by information technology. The entire network of outlets operates in the industry as one large company. Which of the following strategies has Omega Inc. most likely used ?

• A) Chaining
• B) Franchising
• C) Horizontal merger
• D) Niche strategy
• E) Divestment strategy

Distinguish between concentration ratios and the HHI as measures of market concentration.

Understand the role of oligopolies in the US economy and their regulatory environment.

Evaluate the effects of product differentiation and market division strategies on oligopolistic competition.

Understand the concept and implications of the kinked demand curve in oligopolistic markets.

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Definitions:

Psychological Concept

An abstract idea or theory that pertains to the mind or mental processes, forming the foundation of psychological studies.

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The extent to which a test or instrument measures the theoretical construct or concept it is intended to measure.

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A measure of how accurately an assessment or measurement reflects the various aspects of the specific content it is intended to cover.

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related task.