Use the Information Below to Answer the Following Questions

question 111

Multiple Choice

Use the information below to answer the following questions.
Fact 12.1.1
The following statements give some information about seven markets.
1.Coca-Cola cuts its price below that of Pepsi-Cola in an attempt to increase its market share.
2.A single firm,protected by a barrier to entry,produces a personal service that has no close substitutes.
3.A barrier to entry exists,but the good has some close substitutes.
4.A firm offers discounts to students and seniors.
5.A firm can sell any quantity it chooses at the going price.
6.The government issues Nike an exclusive licence to produce golf balls.
7.A firm experiences economies of scale even when it produces the quantity that meets the entire market demand.
-Refer to Fact 12.1.1.The firm described in ________ can price discriminate if it can ________.

• A)statements 2,3,6,and 7;eliminate the barriers to entry
• B)statements 2,3,6,and 7;distinguish between different classes of consumers
• C)statements 2 and 3;eliminate the current barriers to entry
• D)statement 1;increase advertising
• E)statement 1;decrease its costs

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Definitions:

Pectoral Girdle

The structure that attaches the arms to the axial skeleton.

Pelvic Girdle

The structure that attaches the legs to the axial skeleton.

Second Cervical Vertebra

Also known as the axis, it is a bone in the neck that allows the head to rotate.

Process

A series of actions or steps taken to achieve a particular end.