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QUESTION 7 Price discrimination, if possible, allows a firm with market power to increase its profits by charging different prices that: A) reflect the different marginal costs of producing each unit. B) reflect the different average costs of producing each unit. C) reflect the different willingness to pay of each consumer. D) cause the demand curve to shift to the right. E) cause the supply curve to shift downwards. QUESTION 8 Deciding who in the organisation would be responsible for carrying out a strategy would be an example of: A) strategic analysis. B) strategic choice. C) strategic implementation. D) routine management. QUESTION 9 If a firm is using a mark-up pricing policy, price will equal A) AFC + MVC + profit mark-up B) MFC + MVC + profit mark-up C) AVC + profit mark-up D) AFC + AVC + profit mark-up