1)  A supermarket offers one bag of peanuts for $3.5 and three bags of peanuts for $10.  What type of price discrimination is this supermarket engaging in?  pick one:  cartel price discrimination first-degree price discrimination third-degree price discrimination second-degree price discrimination perfect price discrimination   2) The short-run equilibrium for a monopolistically competitive firm is at price equals $21, average total cost equals $27, and marginal cost equals marginal revenue equals $18. Which of the following is true? pickone: The firm could decrease the price and increase profits. The firm could increase the price and increase profits. The firm is operating in the upward-sloping portion of the average total cost (ATC) curve. Some firms will leave this industry. More firms will be attracted into the industry.

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 11PAE
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1) 

A supermarket offers one bag of peanuts for $3.5 and three bags of peanuts for $10.  What type of price discrimination is this supermarket engaging in? 

pick one: 

cartel price discrimination
first-degree price discrimination
third-degree price discrimination
second-degree price discrimination
perfect price discrimination
 
2)

The short-run equilibrium for a monopolistically competitive firm is at price equals $21, average total cost equals $27, and marginal cost equals marginal revenue equals $18. Which of the following is true?

pickone:
The firm could decrease the price and increase profits.
The firm could increase the price and increase profits.
The firm is operating in the upward-sloping portion of the average total cost (ATC) curve.
Some firms will leave this industry.
More firms will be attracted into the industry.
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