..14.objective.

Question 1 Barriers to entry: a) Do exist in monopoly b) Cannot exist in oligopoly c) Doexist in monopolistic competition d) Do not exist in perfect competition Question 2 Which best describes price discrimination? a) Charging different prices for differentproducts b) Charging the same prices for different products c) Charging the same prices for the same products d) Charging different prices for the same products Question 3 For a firm operating in two markets andprice discriminating when profit maximizing a) Marginal revenue in A = Price B b) Marginal revenue in A = Price A c) Marginal revenue in A = Marginal revenue B d) Marginal revenue in A = Average cost in A Question 4 If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge: a) The higher price in market A b) The higher price in market B c) The same price in both markets d) Cannot tell which price will be higher Question 5 In perfect price discrimination: a) Consumer surplus is maximized b) Produce surplus is zero c) Community surplus is maximized d) Consumer surplus is zero Question 6 A benefit to consumers of price discrimination is that: a) Some products are produced that would not otherwise be produced b) Producer surplus increases c) Consumer surplus decreases d) Firms' profits increase Question 7 In perfect price discrimination: a) The demand curve is the marginal cost curve b) The average revenue equals the average cost c) The marginal cost is the average cost curve d) The demand curve is the marginal revenue Question 8 When price discriminating abnormal profits are made if: a) Average revenue is greater than average variable cost b) Average revenue is greater than average cost c) Average revenue is greater than marginal revenue d) Average revenue is greater than average fixed cost Question 9 Barriers to entry: a) Enable abnormal profits to be made in the long run b) Enable losses to be made in the long run c) Enable abnormal profits to be made in the short run only d) Occur in perfect competition Question 10 Barriers to entry do not include a) Patents held by established firms b) Internal economies of scale experienced by established firms c) High mobility of resources d) High investment costs to enter an industry