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Costs , Supply And Perfect Competition MCQs ( Economics ) MCQs – Economics MCQs

Costs , Supply And Perfect Competition MCQs ( Economics ) MCQs – Economics MCQs

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Latest Economics MCQs

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Latest Costs , Supply And Perfect Competition Mcqs ( Economics ) Mcqs

The most occurred mcqs of Costs , Supply And Perfect Competition Mcqs ( Economics ) in past papers. Past papers of Costs , Supply And Perfect Competition Mcqs ( Economics ) Mcqs. Past papers of Costs , Supply And Perfect Competition Mcqs ( Economics ) Mcqs . Mcqs are the necessary part of any competitive / job related exams. The Mcqs having specific numbers in any written test. It is therefore everyone have to learn / remember the related Costs , Supply And Perfect Competition Mcqs ( Economics ) Mcqs. The Important series of Costs , Supply And Perfect Competition Mcqs ( Economics ) Mcqs are given below:

For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?

A. SMC below SAVC, LMC above LAC
B. SMC above SAVC, LMC above LAC
C. SMC, LMC
D. SMC below SAVC, LMC bellow LAC

In the short run a firm will produce zero output if ?

A. price is between short run average total cost and short run average variable cost
B. price is greater than short run average total cost
C. price is less than short run average variable cost
D. profit is zero

Short run average total costs are equals to the sum of ____ and _____?

A. Short run variable costs, profit
B. Short run opportunity costs, profit
C. Short run average variable costs, profit
D. Short run average variable costs, profit run average fixed costs

When average cost is falling marginal cost is ________ and when average cost is rising marginal cost is?

A. less than average cost, less than average cost
B. less than average cost, greater than average cost
C. greater than average cost, greater than average cost
D. greater than average cost, less than average cost

If a long run average cost curve is falling form left to right this is an example of ?

A. increasing returns to scale
B. constant returns to scale
C. decreasing returns to scale
D. the minimum efficient scale

In monopolistic competition ?

A. There are few buyers
B. There are few sellers
C. There is one seller
D. There are many sellers

If a firm takes over a competitor then, according to porter’s 5 forces model ?

A. Substitute threat is higher
B. Supplier power is higher
C. Buyer power is higher
D. Rivalry is lower

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

A. The marginal cost will shift outwards
B. The average cost will shift downwards
C. the demand curve will shift inwards
D. The average variable cost will increase

Natural Resources And The Environment Toward Sustainable Development MCQs

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

A. Product
B. Place
C. Price
D. Presence

In monopolistic competition ?

A. Products are homogeneous
B. Demand is perfectly elastic
C. Marginal revenue = price
D. The marginal revenue is below the demand curve and diverges

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

A. their efficient scale
B. all of these answers are correct
C. the minimum of their average-total-cost curves
D. zero economic profit
E. intersection of marginal cost and marginal revenue

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 elastic
B. perfectly inelastic
C. upward sloping
D. downward sloping

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

A. marginal cost
B. marginal revenue
C. average total cost
D. average revenue

A grocery store should close at night if the ?

A. total costs of staying open are less than the total revenue due to staying open
B. variable costs of staying open are less than the total revenue due to staying open.
C. variable costs of staying open are greater than the total revenue due to staying open
D. total 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?

A. Upward-sloping portion of the average total cost curve
B. upward-sloping portion of the average variable cost curve
C. entire marginal cost curve.
D. portion of the marginal cost curve that lies above the average total cost curve.
E. portion 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 ?

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

If a competitive firm doubles its output its total revenue ?

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

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

A. The are many buyers and sellers in the market
B. All of these answers are characteristic of a competitive 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

In the long run in perfect competition ?

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

In perfect competition ?

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

Basics Of Economics MCQs

In perfect competition ?

A. Short run abnormal profits are competed away by the government
B. Short run abnormal profits are competed away by firms entering the industry
C. Short run abnormal profits are completed away by firms leaving the industry
D. Short run abnormal profits are competed away by greater advertising

In perfect competition ?

A. The products firm offer is very similar
B. A few firms dominate the market
C. Products are heavily differentiated
D. Consumer have limited information

In perfect competition ?

A. The price equals the marginal revenue
B. the fixed cost equals the variable costs
C. the price equals the average variable cost
D. the price equals the total cost

A competitive firm produces a level of output at which ?

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

A competitive firm demand curve is ?

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

For perfect competition to work there must be ?

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

In a competitive industry each buyer and seller ?

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

Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?

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

The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

A. At their lowest points
B. When they are increasing
C. When they are declining
D. When marginal revenue is zero

The firms long run output decision will be where ?

A. marginal revenue equals output
B. long run average cost is lowest
C. marginal revenue equals long run marginal cost
D. marginal cost equals output

If a firm is not operating at the output necessary to achieve all scale economies, it has not achieved its ?

A. Average efficient scale
B. Efficient scale
C. Maximum efficient scale
D. Minimum efficient scale

Decrease returns to scale means that _____ as ______?

A. long run marginal cost rises, output rises
B. Short run marginal cost rises, output rises
C. Short run average cost rises, output rises
D. long run average cost rises, output rises

A production is technique is technically efficient if ?

A. inputs are minimized
B. output is maximized
C. there is no way to make a given output using less of one input and no more of the other inputs
D. Costs are minimized

Applied Microeconomics MCQs

In marketing “USP” stands for ?

A. Unique Selling Proposition
B. Unit Sales Point
C. Underlying Sales Proposition
D. Under Sales Procedure

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

A. Supplier power is high
B. Buyer power is high
C. Entry threat is low
D. Substitute threat is high

Effective branding will tend to make ?

A. Supply more price inelastic
B. Demand more price inelastic
C. Demand more income elastic
D. Supply more income elastic

In monopolistic competition firms profit maximize where ?

A. Marginal revenue = Marginal cost
B. Marginal revenue = Average revenue
C. Marginal revenue = Average cost
D. Marginal revenue = Total cost

In monopolistic competition ?

A. All products are homogeneous
B. Firms face a perfectly elastic demand curve
C. Firms make normal profits in the long run
D. There are barriers to entry to prevent entry

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 ?

A. an increase in the number of firms in the market but no increase in the price of the good
B. an increase the price of the good but no increase in the number of firms in the market
C. an increase the price of the good and an increase in the number of firms in the market
D. no 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 ?

A. perfectly inelastic
B. downward sloping
C. upward sloping
D. perfectly elastic

The long-run market supply curve ?

A. is always more elastic than the short-run market supply curve.
B. has the same elasticity as the short run market supply curve
C. is always perfectly elastic
D. is always less elastic than the short-run market supply curve

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

A. upward-sloping portion of the average total cost curve
B. entire marginal cost curve
C. portion of the marginal cost curve that lies above the average total cost curve
D. upward-sloping portion of the average variable cost curve
E. portion of the marginal cost curve that lies above the average variable cost curve.

If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?

A. temporarily shut down.
B. maintained production at the current level
C. decreased production
D. increased production

For a competitive firm, marginal revenue is ?

A. equal to the quantity of the good sold
B. total revenue divided by the quantity sold
C. average revenue divided by the quantity sold
D. equal to the price of the good sold

Which of the following market would most closely satisfy the requirements for a competitive market ?

A. cable television
B. electricity
C. cola
D. milk
E. All of these answers represent competitive markets

For a perfectly competitive firm ?

A. Price equals marginal revenue
B. price equals total revenue
C. price is greater than marginal revenue
D. price equals total cost

In the short run firms in perfect competition will still produce provided ?

A. The price covers average variable cost
B. The price covers average fixed cost
C. The price covers variable cost
D. The price covers fixed costs

In the long run in perfect competition ?

A. Firms are allocatively inefficient
B. The price equals the total revenue
C. Firms are productively efficient
D. The price equals total cost

A profit maximizing firm is perfect competition produces where ?

A. Marginal revenue equals zero
B. Total revenue is maximized
C. Marginal revenue equals marginal cost
D. Marginal revenue equals average cost

Firms in perfect competition face a?

A. perfectly elastic demand curve
B. perfectly elastic supply curve
C. perfectly inelastic demand curve
D. perfectly inelastic supply curve

Costs , Supply And Perfect Competition MCQs ( Economics ) MCQs – Economics MCQs