Question 24

Which of the following undermines a firm's ability to engage in price discrimination?

Group of answer choices

the inability to prevent resale of the product from one market segment to another

buyers having different elasticities of demand for the product

the seller's market power

the seller's ability to segment the total market

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Question 25

If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she

Group of answer choices

wants to consume less of both ankle sock and bandanas.

wants to consume more of bandanas and fewer ankle socks.

is maximizing total utility and does not want to change their consumption of ankle socks or bandanas.

wants to consume more ankle socks and fewer bandanas.

Question 26

The graph depicts a monopolistically competitive firm (a price searcher with low entry barriers).

Refer to the graph above. In the short run, this monopolistically competitive firm will set price at:

Group of answer choices

$55 and produce 45 units of output

$65 and produce 35 units of output

$50 and produce 35 units of output

$52 and produce 50 units of output

Question 27

If you own a building and you decide to use that building to open a book store,

Group of answer choices

there are no sunk costs involved in this decision

there is an opportunity cost of using this building for a book store because it could have been used in other ways

the only cost relevant to this decision is the price you paid for the building

there is no opportunity cost of using the building for a book store since you own it