Question 2 [5]

TRUE/FALSE QUESTIONS

Consider the following list of statements. Each statement is either true or false. You must read each statement carefully and then select the option that you believe is correct as your answer.

Write down only the question number and next to the number either "True" or "False".

Example: If you believe sub-question 2.6 is true, then write down: 2.6. True.

2.1. At the profit-maximising level of output, marginal profit is not the true profit.

2.2. An efficient allocation of goods in an exchange economy means that goods were

produced by the most efficient technology available.

2.3. A characteristic of oligopolistic markets by which firms are reluctant to change prices even if costs or demands change is called price rigidity.

2.4. Price discrimination, bundling and two-part tariffs are strategies used by businesses to capture consumer surplus.

2.5. Income elasticity of demand lies between the values of 0 and 1 for necessities, of which examples are medicine, milk, bread and porridge.