ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 3

9) A good real-world example of monopolistic competition is
A. lawyers
B. gas stations
C. Time Warner Cable
D. groceries store
10) An industry comprising a small number of firms, each of which
considers the potential reactions of its rivals in making price-output
decisions, is called
A. monopolistic competition
B. oligopoly
C. pure monopoly
D. pure competition
11) Price is constant or given to the individual firm selling in a purely
competitive market because
A. the firm's demand curve is downward sloping
B. of product differentiation reinforced by extensive advertising
C. each seller supplies a negligible fraction of total supply
D. there are no good substitutes for its product
12) The most important pricing strategy for a perfectly competitive
firm is
A. minimizing cost
B. maximizing sales
C. product differentiation
D. advertising
13) Which of the following is a nonprice barrier of entry?
A. Huge sunk cost
B. Discounts
C. Product differentiation
D. Advertising
14) A third-degree price discrimination can be applied to which of the
following market structures?
A. A monopoly