Quiz 15 of ECON251 Purdue University In Tutorial Library

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TITLE: Quiz 15 of ECON251 Purdue University

UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: Economics

QUESTION DESCRIPTION:

 
Quiz 15:
 
1. (Points: 1.0)
If a firm charges different consumers different prices for the same good or service, it
is engaging in:
a. a. odd pricing.
b. b. cost-plus pricing.
c. c. price discrimination.
d. d. markup pricing.
2. (Points: 1.0)
The reason why from 8:00 a.m. to 5:00 p.m., Monday through Friday, is the highprice
time to call long distance is:
a. a. there are more customers calling long distance at this time.
b. b. the cost of making long-distance connections is greatest at this time.
c. c. businesses must call suppliers or customers during business
hours.
d. d. none of these.
3. (Points: 1.0)
When a firm charges different customers different prices without any differences in
production cost, it is known as:
a. a. odd pricing.
b. b. two-part tariff.
c. c. price discrimination.
d. d. cost plus.
4. (Points: 1.0)
A necessary condition for successful price discrimination is:
a. a. perfect competition.
b. b. a market that can be segmented into different buyer groups.
c. c. customers being able to resell the product.
d. d. perfectly elastic demand.
5. (Points: 1.0)
A firm that can effectively price discriminate, will charge a higher price from the:
a. a. customers who have the relatively elastic demand for the product.
b. b. customers who have the relatively inelastic demand for the
product.
c. c. buyers who belong to the largest market segment.
d. d. buyers that are members of the smallest market segment.
6. (Points: 1.0)
A necessary condition for successful price discrimination is:
a. a. no transactions costs.
b. b. differences in the elasticities of demand for the product by
different customer groups.
c. c. selling in a perfectly competitive market.
d. d. buyer ignorance.
7. (Points: 1.0)
A type of market structure that price discrimination is NOT found in is:
a. a. perfect competition.
b. b. monopolistic competition.
c. c. oligopoly.
d. d. monopoly.
8. (Points: 1.0)
For many products, such as fast food, a variety of prices can be found, but sellers with
higher prices can expect to sell their products because:
a. a. consumers are not sensitive to prices.
b. b. arbitrage will quickly eliminate price differences.
c. c. firms differentiate products in many ways, so higher priced fast food
may have better service.
d. d. their demand is perfectly inelastic.
9. (Points: 1.0)
If a firm could practice perfect price discrimination, it would:
a. a. allow resale of its product.
b. b. charge every buyer a different price.
c. c. charge a price based on the quantity of a product bought.
d. d. use odd pricing.
10. (Points: 1.0)
Among the types of firms who are able to practice price discrimination are:
a. a. movie theaters.
b. b. airlines.
c. c. land-line telephone companies.
d. d. all of these.

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SUBJECTS / CATEGORIES:
1. Business Economics
2. Economics
3. Microeconomics

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