CompTIA
Checkpoint
ISC
HP
Dell
EC-Council
EXIN
Fortinet
ITIL®
Juniper
PMI
Microsoft
VMware
Avaya
Google
Salesforce
Amazon
Palo Alto Networks
Certiport
ISC2
All Vendors
  2. Home
  3. Exams
  4. IIA
  5. IIA-CIA-PART4

Free IIA-CIA-PART4 Exam Braindumps (page: 22)

Page 21 of 134
PDF with 535 Questions

Patents are granted to encourage firms to invest in the research and development of new products. Patents are an example of

  1. Vertical integration.
  2. Market concentration.
  3. Entry barriers.
  4. Collusion.

Answer(s): C

Explanation:

Entry barriers exist in all market structures other than perfect competition. The fewer the firms in an industry, the greater the barriers tend to be. Entry barriers include the existence of substantial economies of scale (low unit costs can be achieved only by large producers). They also include barriers created by existing firms. For example, large advertising expenditures may be necessary to compete. Control of raw materials or technology is another barrier. Consequently, patents held by existing firms may serve as an entry barrier because they prevent potential competitors from using certain technology. Patents are rights granted by the federal government to inventors to allow them the exclusive use of their inventions for a specific.



Which type of market structure is most apt to demonstrate price leadership by a major firm in the industry?

  1. Pure competition.
  2. Monopoly.
  3. Monopolistic competition.
  4. Oligopoly.

Answer(s): D

Explanation:

Price leadership is typical in oligopolistic industries. Under price leadership, price changes are announced by a major firm in the industry. Once the leader has spoken, everyone else in the industry matches the price charged by the leader.



Of the major processes affecting the evolution of an industry, which one affects rivalry, entry, expansion, and supply?

  1. Long-run changes in the industry growth rate.
  2. Changes in input costs.
  3. Structural changes in suppliers' and customers' industries.
  4. Government policies.

Answer(s): A

Explanation:

Long-run changes in the industry growth rate affect rivalry, entry, expansion, and supply. These changes occur because of changes in five external factors:demographic traits (such as consumer ages and income levels), trends in needs of buyers (caused by changes in regulation, tastes, lifestyles), relative positions of substitute and complementary products, sales to new customers (market penetration), and product innovation, an internal factor, alters the industry's position regarding the external factors.



During the growthstage of a product's life cycle:

  1. The quality of products is poor.
  2. New product models and features are introduced.
  3. There is little difference between competing products.
  4. The quality of the products becomes more variable and products are less differentiated.

Answer(s): B

Explanation:

In the growth stage, sales and profits increase rapidly, cost per customer decreases, customers are early adopters, new competitors enter an expanding market, new product models and features are introduced, and promotion spending declines or remains stable. The firm enters new market segments and distribution channels and attempts to build brand loyalty and achieve the maximum share of the market. Thus, prices are set to penetrate the market, distribution channels are extended, and the mass market is targeted through advertising. The strategy is to advance by these means and by achieving economies of productive scale.






Post your Comments and Discuss IIA IIA-CIA-PART4 exam with other Community members:

IIA-CIA-PART4 Discussions & Posts