Homework Clinic
Social Science Clinic => Economics => Topic started by: ereecah on Jun 29, 2018
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Which of the following firms is not able to practice price discrimination?
A) commercial airlines B) the largest wheat farmer in Nebraska
C) land-line telephone companies D) movie theaters
Question 2
Excess capacity is a characteristic of monopolistically competitive firms. What does excess capacity mean?
A) It means that firms hire more than the minimum number of workers needed to produce the profit-maximizing level of output.
B) It means that firms build plants that are not large enough to achieve minimum efficient scale.
C) It means that firms do not produce the output level that corresponds to the minimum point on their average total cost curves.
D) It means that firms produce with inefficient combinations of resources.
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Answer to Question 1
B
Answer to Question 2
C