Economics MCQs

Page No. 180

Decrease returns to scale means that _____ as ______?


aShort run marginal cost rises, output rises

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blong run marginal cost rises, output rises

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c Short run average cost rises, output rises

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dlong run average cost rises, output rises

✓



A production is technique is technically efficient if ?


aoutput is maximized

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binputs are minimized

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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

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In marketing “USP” stands for ?


aUnique Selling Proposition

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bUnderlying Sales Proposition

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c Unit Sales Point

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dUnder Sales Procedure

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


aBuyer power is high

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bSupplier power is high

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cEntry threat is low

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dSubstitute threat is high

✓



Effective branding will tend to make ?


aDemand more price inelastic

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bSupply more price inelastic

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cDemand more income elastic

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dSupply more income elastic

✓



In monopolistic competition firms profit maximize where ?


a Marginal revenue = Average revenue

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bMarginal revenue = Marginal cost

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cMarginal revenue = Average cost

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dMarginal revenue = Total cost

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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

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

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

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

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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

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bperfectly inelastic

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cupward sloping

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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

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chas the same elasticity as the short run market supply curve

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

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


aentire marginal cost curve

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bupward-sloping portion of the average total cost curve

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

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d upward-sloping portion of the average variable cost curve

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