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E. Customers can easily resell a good to other customers if there exists price discrimination in the market for the good.
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3) Which of the following types of firms do not practice price discrimination?
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4) Oligopoly, like perfect competition, is a market structure in which firms can easily enter and leave the industry.
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5)
Monopolistic competition is characterized by:
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A. A large number of firms selling differentiated products.
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B. A perfectly elastic demand curve.
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C. High barriers to entry.
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D. large number of firms selling identical products.
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E. A small number of firms selling differentiated products.
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6) Which of the following is not a source of product differentiation?
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A. Prestige considerations in products |
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B. Differences in the cost of production of products |
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C. Physical differences in products |
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D. Differences in the services provided by firms |
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E. Differences in the location of sales outlets |
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7) The restaurants in San Francisco can probably be categorized as examples of firms
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A. operating in an oligopolistic market. |
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B. operating in a monopolistically competitive market |
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C. operating in a perfectly competitive market |
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E. Operating in a monopolistic market |
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