ECON 2100 Conaway test
with complete verified
solutions
Which of the following represents a natural barrier to entry?
A. Economies of scale
B. Economies of scope
C. New York City limits competition in the taxi cab industry by requiring all
cab drivers to have one of a limited number of
highly priced medallions in order to operate their businesses legally.
D. All of the above.
E. Only (a) and (b) are correct - answer E. Only (a) and (b) are correct
2. Which of the following best represents a 3" degree price discrimination
pricing strategy?
A.Paying a lower price per roll price for the 12 pack of paper towels
compared to buying a single roll of paper towels.
B. Costco charges customers a yearly membership fee, plus a fee for each
item they purchase.
C. Microsoft Office and Microsoft Office Schools Edition are identical software
programs, but the Schools Edition can be
, purchased by educational institutions at a lower price.
D. All of the above.
E. Only answers (a) and (b) are correct. - answer C. Microsoft Office and
Microsoft Office Schools Edition are identical software programs, but the
Schools Edition can be
purchased by educational institutions at a lower price.
3. Which of the following best represents a bundling pricing strategy?
A. You can buy season tickets to all the football games of your favorite team
for a single price.
B. Costco charges customers a yearly membership fee, plus a fee for each
item they purchase.
C. Kroger sells a 35 oz. powdered creamer for $3.99 and a 12 oz. for $2.99
D. All of the above.
E. None of the above. - answer A. You can buy season tickets to all the
football games of your favorite team for a single price.
Which of the following is (are) true?
A. If demand is elastic, sellers can raise their revenues by raising their price.
B. If demand is inelastic, sellers can raise their revenues by raising their
price.
with complete verified
solutions
Which of the following represents a natural barrier to entry?
A. Economies of scale
B. Economies of scope
C. New York City limits competition in the taxi cab industry by requiring all
cab drivers to have one of a limited number of
highly priced medallions in order to operate their businesses legally.
D. All of the above.
E. Only (a) and (b) are correct - answer E. Only (a) and (b) are correct
2. Which of the following best represents a 3" degree price discrimination
pricing strategy?
A.Paying a lower price per roll price for the 12 pack of paper towels
compared to buying a single roll of paper towels.
B. Costco charges customers a yearly membership fee, plus a fee for each
item they purchase.
C. Microsoft Office and Microsoft Office Schools Edition are identical software
programs, but the Schools Edition can be
, purchased by educational institutions at a lower price.
D. All of the above.
E. Only answers (a) and (b) are correct. - answer C. Microsoft Office and
Microsoft Office Schools Edition are identical software programs, but the
Schools Edition can be
purchased by educational institutions at a lower price.
3. Which of the following best represents a bundling pricing strategy?
A. You can buy season tickets to all the football games of your favorite team
for a single price.
B. Costco charges customers a yearly membership fee, plus a fee for each
item they purchase.
C. Kroger sells a 35 oz. powdered creamer for $3.99 and a 12 oz. for $2.99
D. All of the above.
E. None of the above. - answer A. You can buy season tickets to all the
football games of your favorite team for a single price.
Which of the following is (are) true?
A. If demand is elastic, sellers can raise their revenues by raising their price.
B. If demand is inelastic, sellers can raise their revenues by raising their
price.
