Economics MCQs

Page No. 180

Decrease returns to scale means that _____ as ______?


aShort run marginal cost rises, output rises


blong run marginal cost rises, output rises


c Short run average cost rises, output rises


dlong run average cost rises, output rises



A production is technique is technically efficient if ?


aoutput is maximized


binputs are minimized


cthere is no way to make a given output using less of one input and no more of the other inputs


d Costs are minimized



In marketing “USP” stands for ?


aUnique Selling Proposition


bUnderlying Sales Proposition


c Unit Sales Point


dUnder Sales Procedure



In Porter’s five force model conditions are more favorable for firms within an industry if ?


aBuyer power is high


bSupplier power is high


cEntry threat is low


dSubstitute threat is high



Effective branding will tend to make ?


aDemand more price inelastic


bSupply more price inelastic


cDemand more income elastic


dSupply more income elastic



In monopolistic competition firms profit maximize where ?


a Marginal revenue = Average revenue


bMarginal revenue = Marginal cost


cMarginal revenue = Average cost


dMarginal revenue = Total cost



If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?


aan increase in the number of firms in the market but no increase in the price of the good


ban increase the price of the good and an increase in the number of firms in the market


can increase the price of the good but no increase in the number of firms in the market


dno impact on either the price of the good or the number of firms in the market



If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?


adownward sloping


bperfectly inelastic


cupward sloping


dperfectly elastic


View Answer perfectly elastic

The long-run market supply curve ?


ais always more elastic than the short-run market supply curve.


bis always perfectly elastic


chas the same elasticity as the short run market supply curve


dis always less elastic than the short-run market supply curve



In the long run, the competitive firm’s supply curve is the ?


aentire marginal cost curve


bupward-sloping portion of the average total cost curve


cportion of the marginal cost curve that lies above the average total cost curve


d upward-sloping portion of the average variable cost curve



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