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 nonprice 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