AEC 316 - Agricultural Marketing
Homework Assignment 2: Chapter 2
Name:____________________ Date:____________________
Multiple choice questions.
There is only one correct answer in multiple choice questions. Please, mark the correct
answer. Each multiple choice question is worth 5 points.
1. A perfectly competitive firm’s demand curve equals its:
Marginal cost curve
Average variable cost curve
Average fixed cost curve
Average revenue curve
None of the above
2. A perfectly competitive firm maximizes profits by setting price equal to:
a. Marginal cost
b. Marginal revenue
c. Average revenue
d. Average total cost
e. Average variable cost
3. In order for a monopoly to continue to be a monopoly:
a. The marginal revenue curve must be downward sloping
b. There must be no close substitutes
c. Marginal revenue must equal marginal costs
d. Average total costs must be decreasing
e. None of the above
4. Marketing strategy which involves dividing a broad target market into subsets of consumers who have, or are perceived to have, common needs, interests, and priorities, and then designing and implementing strategies to target them.
a. Brand name
b. Minor ingredients
c. Market segmentation
d. Product features
e. Packaging
5. What characteristic is indicative of oligopolies?
Low profits
Interdependence of firms
Many firms
Entry is blocked
None of the above
6. At an equilibrium price:
a.The self-interest of consumers is maximized
b.Supply equals demand
c.There is an upward pressure on price
d.There is a downward pressure on price
None of the above
7. When both supply and demand increase, equilibrium quantity will:
a.Decrease
b.Increase
Stay the same
Can’t say
None of the above
8. Elasticity is a concept that deals with:
a.Market structure
b.Market equilibrium
c.Perfect competition
d.Consumer and producer sensitivity to changes in prices and income
None of the above
9. A set of competing firms producing similar products or a commodity in a market is called a(n) ___ .
a.Branch
b.Competition
c.Channel
Industry
None of the above
10. A market structure where there is only one buyer of a specific product is called:
a.Monopsony
b.Monopoly
c.Oligopsony
Monopsonistic competition
None of the above
Essay question: 50 points
11. Use the agricultural commodity that you selected in Chapter 1 and choose one agribusiness that buys it. Investigate the agribusiness using the Internet and other resources, and then write an essay addressing all or as many as possible of the following aspects of the agribusiness:
Size
Sales
Scope of product line
Worth (if public)
Number of employees
Locations globally
Market structure
Industry sector
All your answers/discussion should be typed in one essay that is at least 15 lines long (using formal English, correct paragraph and sentence structure, and making sure your ideas flow well from one sentence to another) using Times New Roman, 12 point, double space and 1-inch margins all around. Before submitting the final essay, use the “Spelling & Grammar” function of the MS Word to correct grammar.
At the end of your essay, provide the full citation record in alphabetical order in your list of references. For examples, visit: http://www.saea.org/wp-content/uploads/2013/08/reference-style-sheet.pdf. Please, note that the list of references does not count toward the minimum required 15 lines. Include your references in the text as “(Smith, 2015)” when citing at the end of a sentence, or “According to Smith (2015)” when citing at the beginning of a sentence. For example,
Negative publicity is a key determinant affecting consumers’ buying decisions (Ahluwalia, Burnkrant, and Unnava, 2000).
According to Cawley and Rizzo (2005), pharmaceutical products in the same therapeutic class experienced negative spillover in terms of lost sales.
Note: Most of the future essay questions will build on this essay question and/or the one agricultural commodity that you choose. This means that if there is little information on the agricultural commodity that you have chosen for this essay question, you should consider choosing a more common agricultural commodity on which ample information is available. In addition, this course will require you to compile all your answers to the essay questions into one term paper to be submitted by the end of the course. This means that the more effort you put into answering essay questions now, the more material you will have accumulated for your term paper by the end of the semester.
TYPE YOUR ANSWER TO THE ESSAY QUESTION 11 BELOW USING AS MUCH SPACE AS YOU NEED. THEN, PRINT THE HOMEWORK ASSIGNMENT AND SUBMIT THE HARD COPY.
