Question

1. Which of the following is not an assumption of the perfect competition model?

		No buyer can affect the price of the product
		sellers are price takers
		Buyers have perfect information on which to make decisions
		each product has achieved a certain baseline level of brand loyalty
		none of the above. All are assumptions.

1. As per our discussions, the mainstream news and media outlets in the US can generally be expected to act with the explicit goal of doing which of the following?

    I   Promoting liberal policies (those inclined to favor higher taxes and increased government regulation of businesses)

   II   seek to promote the public good

  III.  make as much profit as possible

		I only
		III only
		I and II
		II and III
		I, II and III

1. Firms may take advantage of their ability to set prices by changing prices frequently in an effort to extract higher prices from consumers who are willing to pay more. This is called

		Price Management strategy
		collusion
		limit pricing
		third-order price discrimination
		yield management

1. Which of the following would not constitute a way for a street vendor to differentiate her products from those of her competitors?

		Customer service
		Slightly alter the product through seasonings used
		Use a slightly different cooking technique
		Be personable and develop a personal rapport
		None of the above…all constitute ways to achieve competitive differentiation

Answer 1