Need some help on the following TRUE/FALSE questions
1. A firm will charge it's customers two different prices for the same good when the quantity demanded is higher than quantity supplied; this firm's constraint exists when marginal cost equals marginal revenue during peak demand.
2. An incumbent firm purposefully lowers its profits in order to decrease the incentive for new firms to enter the industry; however, in the long run the incumbent will make lower profits.
3. The penetration pricing strategy is where a new entrant charges a price that is initially higher than the price normal charged in attempt to cover their startup costs.
4. If a firm has inelastic demand for its product, its markup factor cannot be changed.
5. In a Sweezy model of oligopoly, competitors match both the price increase and decrease
6. Contestable markets behave like a Bertrand model of oligopoly and therefore will produce were MR=MC and eventually have 0 economic profit.
7. A perfectly competitive firm has a smaller deadweight loss is larger because it produces where MR=MC.
8. In order to produce at the profit maximizing output, every market structure should produce where MR=MC.