Quiz 2 evening session

Quiz 2 evening session - INDIAN INSTITUTE OF MANAGEMENT...

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1 INDIAN INSTITUTE OF MANAGEMENT INDORE PGP 1 / Term 1 / 2011-12 Microeconomics for Managers – Quiz2 (Set 1) TIME: 20 Minutes MARKS: 20 NAME (CAPS):_____________________ ______________________ SECTION____________ Instructions: 1. There are 20 questions and 4 pages in the question paper. 2. Use ink pens for writing. Untidy work or over-written responses will not be evaluated. 3. Each question carries one mark. There is NO negative marking. 4. Indicate answers by writing A/B/C/D (upper case only) in the box for all questions. 5. You may change the answer by putting a cross, and writing the new answer as shown below. You may change the answer further as shown below but no further change is permitted. _____________________________________________________________________________ 1. Some grocery stores are now offering customers coupons, which entitle them to a discount on certain items on their next visit when they go through the check-out line. This practice is an example of: A) inter-temporal price discrimination. B) third-degree price discrimination. C) a two-part tariff. D) second degree price discrimination 2. Assume that a profit maximizing monopolist is producing a quantity such that marginal revenue exceeds marginal cost. We can conclude that the A) firm is maximizing profit. B) firm's output is smaller than the profit maximizing quantity. C) firm's output is larger than the profit maximizing quantity. D) firm's output does not maximize profit, but we cannot conclude whether the output is too large or too small. 3. Suppose Orange Inc. sells MP3 players and initially has monopoly power because there are only a few close substitutes available to consumers. As more types of MP3 players are
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This note was uploaded on 03/01/2012 for the course STRATEGY Om121 taught by Professor Abhinavdhar during the Spring '12 term at Harvard.

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Quiz 2 evening session - INDIAN INSTITUTE OF MANAGEMENT...

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