Chapter 9 Quiz Questions Revision
Exam With 100% Accurate Answers
(2025-2026) Set.
1. What term describes the situation when a firm earns a higher rate of economic profit than
the average rate of economic profit of other firms competing within the same market?
a) Industry effect
b) Competitive advantage
c) Business unit effect
d) Competitive position
e) Market profitability economics - Answer b) Competitive advantage
2. What is the perceived benefit of a product per unit consumed minus the product's monetary
price?
a) Value creation
b) Competitive advantage
c) Consumer surplus
d) Maximum willingness-to-pay
e) Value chain - Answer c) Consumer surplus
3. What term describes the price at which a consumer is indifferent between buying a product
and going without it?
a) Value creation
b) Competitive advantage
c) Consumer surplus
d) Maximum willingness-to-pay
e) Value chain - Answer d) Maximum willingness-to-pay
4. What is one way to measure a firm's willingness-to-pay?
a) Marginal profit per unit of production
b) Value added analysis
c) Cost-benefit analysis
, 5. What type of curve can be used to describe the set of price-quality combinations that yields
the same consumer surplus to an individual?
a) Frontier curve
b) Learning curve
c) Level curve
d) Implicit curve
e) Indifference curve - Answer e) Indifference curve
6. Select the letter corresponding to the best answer. For a given consumer, any price-quality
combination along the indifference curve yields the _______________.
a) Same consumer surplus
b) Same maximum willingness-to-pay
c) High consumer surplus
d) Low consumer surplus
e) Same competitive advantage - Answer a) Same consumer surplus
7. The steepness (slope) of an indifference curve indicates which of the following?
a) The tradeoff a consumer is willing to make between price and quality
b) The change in price holding product benefit constant
c) The change in benefit holding price constant
d) The tradeoff between consumer surplus and producer surplus
e) None of the above - Answer a) The tradeoff a consumer is willing to make between price
and quality
8. When multiple firms' price-quality positions line up along the same indifference curve
offering a consumer the same amount of consumer surplus, what term describes the situation?
a) Price-quality parity
b) Price matching
c) Maximum willingness-to-pay
d) Consumer surplus parity
e) Consumer surplus - Answer d) Consumer surplus parity
Exam With 100% Accurate Answers
(2025-2026) Set.
1. What term describes the situation when a firm earns a higher rate of economic profit than
the average rate of economic profit of other firms competing within the same market?
a) Industry effect
b) Competitive advantage
c) Business unit effect
d) Competitive position
e) Market profitability economics - Answer b) Competitive advantage
2. What is the perceived benefit of a product per unit consumed minus the product's monetary
price?
a) Value creation
b) Competitive advantage
c) Consumer surplus
d) Maximum willingness-to-pay
e) Value chain - Answer c) Consumer surplus
3. What term describes the price at which a consumer is indifferent between buying a product
and going without it?
a) Value creation
b) Competitive advantage
c) Consumer surplus
d) Maximum willingness-to-pay
e) Value chain - Answer d) Maximum willingness-to-pay
4. What is one way to measure a firm's willingness-to-pay?
a) Marginal profit per unit of production
b) Value added analysis
c) Cost-benefit analysis
, 5. What type of curve can be used to describe the set of price-quality combinations that yields
the same consumer surplus to an individual?
a) Frontier curve
b) Learning curve
c) Level curve
d) Implicit curve
e) Indifference curve - Answer e) Indifference curve
6. Select the letter corresponding to the best answer. For a given consumer, any price-quality
combination along the indifference curve yields the _______________.
a) Same consumer surplus
b) Same maximum willingness-to-pay
c) High consumer surplus
d) Low consumer surplus
e) Same competitive advantage - Answer a) Same consumer surplus
7. The steepness (slope) of an indifference curve indicates which of the following?
a) The tradeoff a consumer is willing to make between price and quality
b) The change in price holding product benefit constant
c) The change in benefit holding price constant
d) The tradeoff between consumer surplus and producer surplus
e) None of the above - Answer a) The tradeoff a consumer is willing to make between price
and quality
8. When multiple firms' price-quality positions line up along the same indifference curve
offering a consumer the same amount of consumer surplus, what term describes the situation?
a) Price-quality parity
b) Price matching
c) Maximum willingness-to-pay
d) Consumer surplus parity
e) Consumer surplus - Answer d) Consumer surplus parity
