Dhaka School of Economics

MEcon in Development Economics

Microeconomics-II
Class Test-2 Date: 01.09.2019
Full Marks: 30

Decide True or False and write the Rationales (Marks: 11*2 = 22)
1. Airline companies follow the First Degree Price Description for the fares.
F
3rd degree
2. Cellular phone service pricing is an example of Peak Load Pricing.
F
2 part Tariff
3. You went to Baton Rouge Restaurant, Dhaka for having a dinner with 2/3 items.
But you ended up having a Buffet Dinner. You thought that you became a victim of
their Marketing strategy.
F
Mixed Bundling
4. “The first product is useless without access to the secondary product” in case of
Two Part Tariff.
F
Tying
5. “Percentage change in quantity demanded resulting from a 1-percent increase in
advertising expenditures” is the advertising-to-sales ratio.
F
advertising elasticity of demand
6. A doctor charges two different prices for medical services depending on the
income levels of the patients following the third degree price discrimination
strategy.
T
7. Monopolistically competitive firms have monopoly power.
T
8. The market structure in which strategic considerations are most important is
Monopolistic Market.
F
Oligopoly
9. A market for chilly is most likely to be Oligopolistic.
F
PC
10. Product Diversity is an important gain from perfect competition.
F
Monopolistic
11. Each firm is doing the best given what its competitors are doing is the Nash
Equilibrium.
T