T-Mobile 1:41 PM 15. In pure competition, each extra unit of output that a firm
ID: 1104261 • Letter: T
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T-Mobile 1:41 PM 15. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is ( a. equal to the price b. less than the price. e. greater than the price. d. equal to the average cost. 16. Which of the following is a barrier to entry? a. Patents b. Revenue maximization c. Profit maximization d. Elastic product demand 17. Which is the best example of price discrimination? ( a. An airline company charging lower fares per pound for air freight than for passengers. b. A telephone company charging lower rates to weekend users than weekday users. c. A supermarket charging lower prices in its inner city store than its out-of-town store. d. A private doctor charging higher fees to patients receiving special services than patients receiving regular services. 18. A high concentration ratio indicates that ) a. the industry is highly profitable. b. the industry is highly competitive. c. many firms produce most of the output in an industry d. few firms produce most of the output in an industry. 19. Money is not an economic resource because ) a. money, as such, does not produce anything. b. idle money balances do not earn interest income. c. it is not scarce. d. money is not a free gift of nature. 20. Which type of goods is most adversely affected by recessions? ) a. Goods for which the income-elasticity coefficient is relatively low or negative. b. Goods for which the income-elasticity coefficient is relatively high and positive. c. Goods for which the cross positive d. Goods for which the cross-elasticity coefficient is negative -elasticity coefficient isExplanation / Answer
15) Ans) a) Equal to price.
16) Ans) a) Patent
17) b) A Telephone company charging lower rates to weekend users than weekday users.
18) d) Few firms Produce most of the output in an industry.
19) Ans) a) Money as such, do not produce anything
20) Ans) b) Goods for which the income elasticity coefficient is relatively high and positive.
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