Question

Please help with these questions

Question 1 0.16 pts Siyed, an economics student, believes that a beer sold by one particular shack on the beach is completely different from an identical beer produced by the same factory and sold by the luxury hotel adjacent to the shack. Siyed most likely thinks that O the luxury hotel is a monopoly seller of the been O the shack is in a perfectly competitive industry, but the luxury hotel is in an oligopoly industry. O the luxury hotel and the shack are in a monopolistically competitive industry, O while beer is homogeneous, the product is differentiated among the sellers. the luxury hotel and the shack are in a perfectly competitive industry Question 2 0.16 pts According to the discussion in the textbook, Kevin Trudeau O was sued by the Federal Trade Commission (FTC) for false advertising in 1998. O is the former head of the FTC O is the head of the Securities and Exchange Commission (SEC). is the former CEO of Enron. O is the former prime minister of Canada. Question 3 0.16 pts Which of the following is evidence of market power? Optimal output is less than industry output. O Output is fixed despite cost changes. O The firm has perfect control over price. O markup O The demand curve for the firm is horizontal.

Answer 1

Q.1.

Since Siyed thinks that beer sold by shack is completely different from that sold by luxury hotel, then according to him beer is a homogeneous good but this product is differentiated among the sellers.

Correct Ans - D

Q.2.

In 1998, the Federal Trade Commission (FTC) accused Kevin Trudeau  of grossly misrepresenting the contents of his book, The Weight-Loss Cure "They" Don't Want You to Know About and sued him for false advertising.

Correct Ans - A

Q.3.

Markup means selling output at a higher price than compared to the perfect competition case. This is usually possible when a firm is either monopoly or has a dominant market share indicating towards greater market power.

Correct Ans - D