A fundamental feature of a monopolistic market is that the firm ________. *   a) can sell any quantity it desires at the current market price   b) can obtain any price for any quantity of output   c) faces a perfectly inelastic demand curve   d) faces the price and quantity trade-off dictated by market demand

Q9. A fundamental feature of a monopolistic market is that the firm ________. *

a) can sell any quantity it desires at the current market price

b) can obtain any price for any quantity of output

c) faces a perfectly inelastic demand curve

d) faces the price and quantity trade-off dictated by market demand

Q2. Which of the followings is an appropriate statement about the "limit pricing" strategy"? *

a) The strategy is most effective in a perfectly competitive market.

b) Goods and services are sold by suppliers at a price higher than the short-term profit maximizing level.

c) The main purpose of the strategy is to protect the existing firm's long-run profits from damage by competition.

d) The main purpose of the strategy is to charge each customer the maximum price he or she is prepared to pay for the product.

Q3. Which of the followings is an example of second degree price discrimination? *

a) Ladies' night in a bar

b) Half-price tickets for kids in the cinema

c) Business class and economy class seats on the airlines

d) Introductory offer only to new customers

Q4. Which of the followings is an example of third degree price discrimination *

a) Prices negotiated with individual customers

b) Volume discounts for greater purchase

c) Bus and train fares during peak hours

d) Discounts for the parents having more than two children