ETS MFT BUSINESS EXAM | NEWEST
ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% PASS | 2025 UPDATE!
In general, the __________ difficult it is for an organization to enter an
industry as a new competitor, the __________ are the barriers to entry
to this industry
a) Less; lower
b) More; lower
c) More; higher
d) Less; higher - ✔✔✔ Correct Answer > C
A department manager telephoned two managers in other
departments to discuss a cost savings idea that would benefit their
departments as well as her own. Which of the following most
accurately defines the communication channel that the manager was
using?
,a) Upward
b) Lateral
c) Downward
d) Hierarchical. - ✔✔✔ Correct Answer > B
An open access good (or common property good), such as a fishery:
a) Is rival but not excludable
b) Is both rival and excludable
c) Is neither rival nor excludable
d) Is not rival but is excludable - ✔✔✔ Correct Answer > A
Marketers must constantly monitor their competitors' products, prices,
distribution, and promotional efforts because the:
a) competitors may be violating the truth-in-advertising laws
,b) actions of competitors may threaten the firm's monopoly position
c) actions of competitors may create an oligopoly within an industry
d) new product offerings by a competitor may require adjustments to
one or more components of the firm's marketing mix - ✔✔✔ Correct
Answer > D
A differentiation strategy enables a business to address the five
competitive forces by
a) lessening competitive rivalry by distinguishing itself
b) having brand-loyal customers become more sensitive to prices
c) increasing economies of scale
d) serving a broader market segment - ✔✔✔ Correct Answer > A
Only one of the following statements is false at the long-run
equilibrium for a firm in a monopolistically competitive industry. Which
one is false?
, a) Price equals Average Total Cost, like a competitive firm
b) Price exceeds marginal cost, like a monopolist
c) Firms make zero economic profit, like a competitive firm
d) Firms produce at the bottom of the ATC curve, like a competitive
firm - ✔✔✔ Correct Answer > D
Dreamland Pillow Company sells the "Old Softy" model for $20 each.
One pillow requires two pounds of raw material and one hour of direct
labor to manufacture. Raw material costs $3 per pound and direct
production labor is paid $4 per hour. Fixed supervisory costs are $2,000
per month and Dreamland rents its factory on a five-year lease for
$4,000 per month. All costs are considered costs of production.
Another firm has offered to produce "Old Softy" and sell them to
Dreamland for $12 each. Dreamland cannot avoid the factory lease
payments, but can avoid all labor costs if it does not produce these
pillows. Under these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000?
a) 417
ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% PASS | 2025 UPDATE!
In general, the __________ difficult it is for an organization to enter an
industry as a new competitor, the __________ are the barriers to entry
to this industry
a) Less; lower
b) More; lower
c) More; higher
d) Less; higher - ✔✔✔ Correct Answer > C
A department manager telephoned two managers in other
departments to discuss a cost savings idea that would benefit their
departments as well as her own. Which of the following most
accurately defines the communication channel that the manager was
using?
,a) Upward
b) Lateral
c) Downward
d) Hierarchical. - ✔✔✔ Correct Answer > B
An open access good (or common property good), such as a fishery:
a) Is rival but not excludable
b) Is both rival and excludable
c) Is neither rival nor excludable
d) Is not rival but is excludable - ✔✔✔ Correct Answer > A
Marketers must constantly monitor their competitors' products, prices,
distribution, and promotional efforts because the:
a) competitors may be violating the truth-in-advertising laws
,b) actions of competitors may threaten the firm's monopoly position
c) actions of competitors may create an oligopoly within an industry
d) new product offerings by a competitor may require adjustments to
one or more components of the firm's marketing mix - ✔✔✔ Correct
Answer > D
A differentiation strategy enables a business to address the five
competitive forces by
a) lessening competitive rivalry by distinguishing itself
b) having brand-loyal customers become more sensitive to prices
c) increasing economies of scale
d) serving a broader market segment - ✔✔✔ Correct Answer > A
Only one of the following statements is false at the long-run
equilibrium for a firm in a monopolistically competitive industry. Which
one is false?
, a) Price equals Average Total Cost, like a competitive firm
b) Price exceeds marginal cost, like a monopolist
c) Firms make zero economic profit, like a competitive firm
d) Firms produce at the bottom of the ATC curve, like a competitive
firm - ✔✔✔ Correct Answer > D
Dreamland Pillow Company sells the "Old Softy" model for $20 each.
One pillow requires two pounds of raw material and one hour of direct
labor to manufacture. Raw material costs $3 per pound and direct
production labor is paid $4 per hour. Fixed supervisory costs are $2,000
per month and Dreamland rents its factory on a five-year lease for
$4,000 per month. All costs are considered costs of production.
Another firm has offered to produce "Old Softy" and sell them to
Dreamland for $12 each. Dreamland cannot avoid the factory lease
payments, but can avoid all labor costs if it does not produce these
pillows. Under these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000?
a) 417
