In a purely competitive market, the supplier of goods and services has no control over the market price, because he produces too little to influence market conditions. With no difference between his products and the products __1__ his competitors, he will sell nothing if he charges above the market price and he will sell all if he charges at or __2__ the market price. However, in considering the price, he must take cost of production __3__. There are times when he may be willing to sell below his cost. This might happen when prices tumble for __4__ a short time. However, no business person can __5__ lose money for a prolonged period. He must __6__ of his costs in relation to the market price if he is to compete successfully and earn a profit.
Many people have the impression that as production increases, costs per unit decrease. __7__ mass production has made this true in certain industries and at certain levels of production, __8__ logic and practical experience have shown that costs per unit begin to rise beyond a certain level of production. Some economists __9__ this principle as the law of increasing costs.
The reason __10__ rise as production goes up is complex. However, it is easy to recognize that as production goes up, the need for additional factors of production will also grow, resulting __11__ competitive bidding in the marketplace for the factors of production. If a producer needs __12__ skilled labor to produce more, and none of this labor is unemployed, the producer will have to get __13__ from other sources. This can be done by __14__ higher wages. Higher bidding would also apply to the other factors of production. We must also recognize that not all labor is equally productive, __15__ not all land is equally fertile and not all ore is equally rich in the mineral wanted.
1. A) to B) at C) of D) on
2. A) below B) beneath C) over D) above
3. A) to consider B) into consideration C) to consideration D) in consideration
4. A) he believes will be B) what he believes be C) what he believes will be D) he believes to be
5. A) afford to B) be affordable C) be afforded to D) have afforded
6. A) constantly aware B) constantly knowledgeable of C) be constantly aware of D) constantly aware of
7. A) Because B) Since C) When D) While
8. A) both B) as well as C) also D) but
9. A) refer B) refer to C) call D) are referred to
10. A) cost B) the cost C) the costs D) costs
11. A) from B) in C) D) for
12. A) less B) numerous C) more D) many
13. A) them B) these C) it D) those
14. A) offering B) cutting C) reducing D) having
15. A) as just B) just as C) because D) while
KEYS: CABCA CDABD BCCAB
Importance of the Public Image
Public image refers to how a company is viewed by is customers, suppliers, and stockholders, by the financial community, by the communities in which it operates, and by federal and local governments. Public image is controllable ________, just as the product, price, place, and promotional efforts are.
A firms public image ________ a vital role in the attractiveness of the firm and its products to employees, customers, ________ to such outsiders as stockholders, suppliers, creditors, government officials, as well as diverse special groups. With some things it is ________ to satisfy all the diverse publics: for example, a new highly automated plant may meet the approval of creditors and stockholders, but ________ will undoubtedly find resistance from employees who see their ________ threatened. On the other hand, high-quality products and service standards should bring almost complete approval, ________ low quality products and false claims would be widely looked down upon.
A firms public image, ________ it is good, should be treasured and protected. It is a valuable asset ________ usually is built up over a long and satisfying relationship of a firm with is publics. If a firm has ________ a quality image, this is not easily countered or imitated by competitors. ______ an image may enable a firm to charge higher prices, to woo the best distributors and dealers, to attract the best employees, to expect ________ favorable creditor relationships and lowest borrowing costs. It should also allow the firms stock to command a higher price-earnings ratio than other firms in the same industry ________ such a good reputation and public image.
A number of factors affect the public image of a corporation. ________ include physical facilities, contacts of outsiders with company employees, product quality and dependability, prices ________ competitors, customer service, the kind of advertising and the media and programs used, and the use of public relations and publicity.
1. A) at considerable extent B) to considerable extent C) to considerate extent D) at considerate extent
2. A) establishes B) plays C) makes D) obtains
3. A) but B) however C) and D) as
4.A) possible B) easy C) not impossible D) impossible
5.A) they B) some C) it D) we
6.A) plant B) jobs C) machines D) themselves
7.A) while B) when C) as D) and
8.A) that B) if C) which D) /
9.A) that B) who C) whose D) of which
10.A) been B) developed C) found D) learned
11.A) With B) Such C) Like D) /
12.A) a more B) more C) most D) the most
13.A) with B) without in D) of
14.A) They B) It C) Some D) Most
15.A) related to B) connected with C) relative to D) related with
KEY:BBCDC BABAB BDBAC
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