Question 1

Every weekend, retailers, particularly grocery stores, publish discount coupons in local papers. What is this behaviour consistent with?

Question 1 options:

concern for low-income families

increasing returns to scale

price discrimination

perfect competition

Question 2

A monopoly firm can sell as much output as it wants at whatever price it sets.

Question 2 options:

TrueFalse

Question 3

Patents can serve as an entry barrier.

Question 3 options:

TrueFalse

Question 4

Question 4 options:

Which of the following is NOT a cause of monopoly?

economies of scale

a copyright

freely available critical inputs to production

a patent

Question 5

Milk comes in containers of different sizes. The large ones cost more than the smaller containers, but on a per unit basis, they cost less. What is the likely reason for this discrepancy?

Question 5 options:

increasing returns to scale

price discrimination

marginal cost pricing

positive externalities