Economics Mcqs

A. decreasing returns to scale
B. The law of diminishing returns
C. constant returns to scale
D. an inefficient production technique

A. is a price taker
B. Producer different products
C. Believes that can influence price
D. Prevents the entry of competitors

A. many buyers and sellers
B. a standard product
C. free entry and exit
D. perfect information
E. all of the above

A. Horizontal
B. vertical
C. downward sloping
D. elastic

A. Price is greater than marginal cost
B. price equals marginal cost
C. price is less than marginal cost
D. None of the above

A. A few firms dominate the industry
B. Firms are price makers
C. There are many buyers but few sellers
D. There are many buyers and sellers

A. price = average cost = marginal cost
B. price = average cost = total cost
C. price = marginal cost = total cost
D. Total revenue = Total variable cost

A. All of these answers are characteristic of a competitive market
B. The are many buyers and sellers in the market
C. The goods offered for sale are largely the same.
D. Firms generate small but positive economic profits in the long run
E. Firms can freely enter or exit the market

A. doubles.
B. more than double
C. less than doubles.
D. cannot be determined because the price of the good may rise or fall

A. price equals average variable cost
B. marginal revenue equals average revenue
C. marginal cost equals total revenue
D. marginal cost equals marginal revenue