Multiple choice

1) 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

2) The most important pricing strategy for a perfectly competitive firm is

A. minimizing cost

B. maximizing sales

C. product differentiation

D. advertising

3) Which of the following is a non price barrier of entry?

A. Huge sunk cost

B. Discounts

C. Product differentiation

D. Advertising

4) A third-degree price discrimination can be applied to which of the following market structures?

A. A monopoly

B. An oligopoly

C. A monopolistic competition

D. A perfect competition