Economics MCQs

Page No. 178

In monopolistic competition of firms are making abnormal profit other firms will enter and ?


aThe marginal cost will shift outwards


bthe demand curve will shift inwards


cThe average cost will shift downwards


dThe average variable cost will increase



Which of the following is not one of the four Ps in marketing ?


aProduct


bPrice


cPlace


dPresence


View Answer Product

in long-run equilibrium in a competitive market, firms are operating at ?


athe minimum of their average-total-cost curves


ball of these answers are correct


ctheir efficient scale


d zero economic profit



If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?


a perfectly inelastic


bperfectly elastic


cupward sloping


ddownward sloping


View Answer upward sloping

In the long-run some firms will exit the market if the price of the good offered for sale is less than ?


amarginal revenue


bmarginal cost


caverage total cost


daverage revenue


View Answer average total cost

A grocery store should close at night if the ?


avariable costs of staying open are less than the total revenue due to staying open.


b total costs of staying open are less than the total revenue due to staying open


cvariable costs of staying open are greater than the total revenue due to staying open


dtotal costs of staying open are greater than the total revenue due to staying open



In the short run, the competitive firm’s supply curve is the portion of the marginal cost curve that lies above the average variable cost curve?


aUpward-sloping portion of the average total cost curve


bupward-sloping portion of the average variable cost curve


c portion of the marginal cost curve that lies above the average total cost curve.


dportion of the marginal-cost curve that lies above the average variable cost curve



The competitive firm maximize profit when it produces output up to the point where ?


aprice equals average variable cost


bmarginal revenue equals average revenue


cmarginal cost equals total revenue


dmarginal cost equals marginal revenue



If a competitive firm doubles its output its total revenue ?


adoubles


bmore than double


c less than doubles.


dcannot be determined because the price of the good may rise or fall


View Answer doubles

Which of the following is not a characteristic of a competitive market ?


a All of these answers are characteristic of a competitive market


bThe are many buyers and sellers in the market


cThe goods offered for sale are largely the same.


dFirms generate small but positive economic profits in the long run



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