OPM 3000 QUESTIONS WITH CORRECT
ANSWERS
Economic theory suggests that a customer chooses a product or service to obtain the
highest _________.
-demand
-supply
-utility
-satisfaction - ANSWER A customer chooses a product or service that gives him/her the
highest utility.
The set of products or services a business offers to its customers is called
_________blank.
-demand
-bundle
-supply
-value - ANSWER Supply is the set of products or services offered by a business to its
customers
A customer's desire for a product or service is measured by its _________.
-popularity
-costs
-utility
-advertisement - ANSWER According to economic theory, utility measures one's desire
for a product or service
The many flavors of ice-cream offered by ice-cream parlors are reflective of the
_________ of today's
-bargaining power
-homogeneous preferences
-heterogeneous preferences
, -knowledge base - ANSWER The differences in customer preferences for the taste,
color, or size of a product or services are called heterogeneous preferences.
Economists refer to the inconvenience of obtaining a product or receiving a service as
_________.
-transaction costs
-fit
-timing
-unavailability - ANSWER Economists refer to the inconvenience of obtaining a product
or receiving a service as transaction costs
A restaurant promising a meal in two minutes or less is attempting to cater to which part
of the customer utility function?
-Timing
-Preference
-Ambience
-Fit - ANSWER Promising customers quick delivery is designed to appeal to the timing
dimension of customer utility.
Which of the following statements about a firm's capabilities is FALSE?
-A firm has capabilities to do well on some dimensions of its customers' utility function.
-A firm has capabilities to do well on all dimensions of its customers' utility function.
-A firm's capabilities can be defined as the dimensions of the customer's utility function
it is able to satisfy.
-How well a firm can satisfy its customers' utility function is dependent on its
capabilities. - ANSWER A firm has capabilities to do well on some but not all dimensions
of its customers' utility function.
You are considering four hotels that differ from each other with respect to their price
and customer reviews:
Hotel Price Reviews (1 = worst . . . 5 = best)
H1 $ 100 3
H2 $ 250 5
H3 $ 200 4
H4 $ 150 2
ANSWERS
Economic theory suggests that a customer chooses a product or service to obtain the
highest _________.
-demand
-supply
-utility
-satisfaction - ANSWER A customer chooses a product or service that gives him/her the
highest utility.
The set of products or services a business offers to its customers is called
_________blank.
-demand
-bundle
-supply
-value - ANSWER Supply is the set of products or services offered by a business to its
customers
A customer's desire for a product or service is measured by its _________.
-popularity
-costs
-utility
-advertisement - ANSWER According to economic theory, utility measures one's desire
for a product or service
The many flavors of ice-cream offered by ice-cream parlors are reflective of the
_________ of today's
-bargaining power
-homogeneous preferences
-heterogeneous preferences
, -knowledge base - ANSWER The differences in customer preferences for the taste,
color, or size of a product or services are called heterogeneous preferences.
Economists refer to the inconvenience of obtaining a product or receiving a service as
_________.
-transaction costs
-fit
-timing
-unavailability - ANSWER Economists refer to the inconvenience of obtaining a product
or receiving a service as transaction costs
A restaurant promising a meal in two minutes or less is attempting to cater to which part
of the customer utility function?
-Timing
-Preference
-Ambience
-Fit - ANSWER Promising customers quick delivery is designed to appeal to the timing
dimension of customer utility.
Which of the following statements about a firm's capabilities is FALSE?
-A firm has capabilities to do well on some dimensions of its customers' utility function.
-A firm has capabilities to do well on all dimensions of its customers' utility function.
-A firm's capabilities can be defined as the dimensions of the customer's utility function
it is able to satisfy.
-How well a firm can satisfy its customers' utility function is dependent on its
capabilities. - ANSWER A firm has capabilities to do well on some but not all dimensions
of its customers' utility function.
You are considering four hotels that differ from each other with respect to their price
and customer reviews:
Hotel Price Reviews (1 = worst . . . 5 = best)
H1 $ 100 3
H2 $ 250 5
H3 $ 200 4
H4 $ 150 2
