G-202 EXAM TWO UPDATED TEST PAPER
2026 QUESTIONS WITH ANSWERS GRADED
A+
●● To gain market power.
Answer: the manager's job is to attempt to sustain any factors which
limit competition
●● Market Strategies to Restrict Competition.
Answer: - Guarding trade secretes.
- Control of an essential resource.
- Exclusive contracts and customer lock-in.
- Coke on campus.
- Extended cell phone contracts.
- Collusion (form a cartel and act as a monopoly).
●● Non-Market Strategies to Restrict Competition.
Answer: -Government Licensing.
-Patent or copyright protection.
-Trade regulations.
-Government or NGO certification
,●● Optimal Sales Target (Qf).
Answer: The profit maximizing sales target occurs where marginal
revenue equals marginal cost. (MR=MC)
- If MR>MC then the firm could make a profit by selling one more unit.
- If MC>MR then the firm would lose money on selling the unit.
●● Optimal Price (Pf).
Answer: Given the optimal sales target, price is found as a markup over
cost, where the markup factor depends on the demand for the product.
- More inelastic demand results in a higher mark up over costs (a higher
posted price).
●● Customizing Prices.
Answer: - Consumers differ based on their demand elasticity and
willingness to pay
- Firms can exploit these differences to better customize prices and
extract more market surplus
●● Imperfect Price Discrimination.
Answer: Groups of consumers are charged different prices, based on
their different willingness to pay (elasticity)
- Increasing the number of segmented groups:
• increases producer surplus (profits), relative to using a single price.
• decreases consumer surplus, but not down to zero.
,●● perfect price discrimination.
Answer: Each consumer is charged amprice equal to her willingness to
pay.
- No social inefficiency occurs, but all market surplus goes to the
producer (CS = 0).
- Profits are increased relative to imperfect price discrimination.
●● Unilever's Logo.
Answer: Symbolizes Unilever's core values and mission.
- Over half of Unilever's values are sustainability focused
●● Unilever's Stakeholder Hierarchy.
Answer: Consumers—Society—Employees—Shareholders
●● The USLP hierarchy and Unilever's values.
Answer: - Were envisioned to improve business performance by
signaling to key stakeholders that societal issues are integrated in
Unilever's core business strategy.
• There is a growing consumer trend toward improved health &
protected environment.
• Employee motivation and empowerment around solving society's
biggest challenges leads to more innovation.
, • Government regulations and NGO activist campaigns are focusing
more on mitigating global social threats.
• Trust & Transparency are important, especially for socially responsible
investors (SRIs) that are growing in importance in capital allocations.
●● Unilever Differentiates through Sustainability.
Answer: - The Sustainable Living Plan (USLP) allows Unilever to
differentiate its products in markets that are usually seen as more
homogeneous.
• The differentiation creates loyal customers, from those that value
sustainability.
• Loyal customers, have more inelastic demand, giving Unilever market
power in pricing.
●● The USLP Initially Increased Profits.
Answer: - Customer Loyalty: Higher Prices and More Sales
• Increased Operating Margins from 13.6% to 14.5%.
• Market share gains have outpaced market growth
- Employee Loyalty: Improved Recruiting & Retention and Increased
Productivity
• World's most in-demand employers: 3rd behind on Google and Apple,
ahead of Microsoft, Facebook, and Amazon.
• Employee satisfaction rating grew from 63% to 75%
- Investor Loyalty: More Resources for R&D and Expansion
2026 QUESTIONS WITH ANSWERS GRADED
A+
●● To gain market power.
Answer: the manager's job is to attempt to sustain any factors which
limit competition
●● Market Strategies to Restrict Competition.
Answer: - Guarding trade secretes.
- Control of an essential resource.
- Exclusive contracts and customer lock-in.
- Coke on campus.
- Extended cell phone contracts.
- Collusion (form a cartel and act as a monopoly).
●● Non-Market Strategies to Restrict Competition.
Answer: -Government Licensing.
-Patent or copyright protection.
-Trade regulations.
-Government or NGO certification
,●● Optimal Sales Target (Qf).
Answer: The profit maximizing sales target occurs where marginal
revenue equals marginal cost. (MR=MC)
- If MR>MC then the firm could make a profit by selling one more unit.
- If MC>MR then the firm would lose money on selling the unit.
●● Optimal Price (Pf).
Answer: Given the optimal sales target, price is found as a markup over
cost, where the markup factor depends on the demand for the product.
- More inelastic demand results in a higher mark up over costs (a higher
posted price).
●● Customizing Prices.
Answer: - Consumers differ based on their demand elasticity and
willingness to pay
- Firms can exploit these differences to better customize prices and
extract more market surplus
●● Imperfect Price Discrimination.
Answer: Groups of consumers are charged different prices, based on
their different willingness to pay (elasticity)
- Increasing the number of segmented groups:
• increases producer surplus (profits), relative to using a single price.
• decreases consumer surplus, but not down to zero.
,●● perfect price discrimination.
Answer: Each consumer is charged amprice equal to her willingness to
pay.
- No social inefficiency occurs, but all market surplus goes to the
producer (CS = 0).
- Profits are increased relative to imperfect price discrimination.
●● Unilever's Logo.
Answer: Symbolizes Unilever's core values and mission.
- Over half of Unilever's values are sustainability focused
●● Unilever's Stakeholder Hierarchy.
Answer: Consumers—Society—Employees—Shareholders
●● The USLP hierarchy and Unilever's values.
Answer: - Were envisioned to improve business performance by
signaling to key stakeholders that societal issues are integrated in
Unilever's core business strategy.
• There is a growing consumer trend toward improved health &
protected environment.
• Employee motivation and empowerment around solving society's
biggest challenges leads to more innovation.
, • Government regulations and NGO activist campaigns are focusing
more on mitigating global social threats.
• Trust & Transparency are important, especially for socially responsible
investors (SRIs) that are growing in importance in capital allocations.
●● Unilever Differentiates through Sustainability.
Answer: - The Sustainable Living Plan (USLP) allows Unilever to
differentiate its products in markets that are usually seen as more
homogeneous.
• The differentiation creates loyal customers, from those that value
sustainability.
• Loyal customers, have more inelastic demand, giving Unilever market
power in pricing.
●● The USLP Initially Increased Profits.
Answer: - Customer Loyalty: Higher Prices and More Sales
• Increased Operating Margins from 13.6% to 14.5%.
• Market share gains have outpaced market growth
- Employee Loyalty: Improved Recruiting & Retention and Increased
Productivity
• World's most in-demand employers: 3rd behind on Google and Apple,
ahead of Microsoft, Facebook, and Amazon.
• Employee satisfaction rating grew from 63% to 75%
- Investor Loyalty: More Resources for R&D and Expansion
