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bang.kularb 10 questions

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Questions in this quiz (10)

  1. 1Price = marginal cost is the point of...
    1. AProductive effiency
    2. BAllocative efficiency
    3. CProfit maximization
    4. DDynamic effiiency
  2. 2What is not a correct assumption of a perfect competition market?
    1. AVery little barriers to entry/exit
    2. BProducts are perfect substitutes
    3. CMany individual buyers
    4. DEach firm's product is perfectly elastic in demand
  3. 3When should a firm shutdown in the short run?
    1. AWhen total revenue is higher than the total variable cost
    2. BWhen marginal revenue is equal to the marginal cost
    3. CWhen the average total cost is higher than the average variable cost
    4. DWhen the average variable cost is higher than price
  4. 4Which of these,perfect competition markets will not achieve?
    1. AAllocative efficiency
    2. BProductive efficiency
    3. CProfit in the short run
    4. DDynamic efficieny
  5. 5What is the reason for an increase in marginal cost of a firm in the short run?
    1. AEconomic of scales
    2. BCapital to labour ratio falls
    3. CThere are no subsidies in the short run
    4. DAn increase in the number of firms
  6. 6Why would a firm still operate when they can only cover the average variable cost?
    1. AThe cost of shutting down is equal to the fixed cost
    2. Bif the firms have no sunk cost
    3. CBecause they are earning abnormal profit
    4. DDiminishing returns to scale
  7. 7What is one of the private firm's main objective?
    1. ASales maximisation
    2. BNot causing externalities
    3. CReduces unemployment
    4. DHire workers at the minimum wage
  8. 8What is the characteristic of a monopolistic competition
    1. AProducts are homogenous
    2. BNo firms can influence market price
    3. CThere are no barriers to entry
    4. DLarge number of buyers
  9. 9If the supply curve of a labour market is perfectly elastic, what will the workers earnings be?
    1. AEconomic rent
    2. BTransfer earnings
    3. CMarginal cost
    4. DProductive earnings
  10. 10What is a downside of a perfect competition market?
    1. ACan't invest in research
    2. BExternalities
    3. CUnemployment is high
    4. DOnly limited number of firms

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Quiz on Untitled, created by bang.kularb on 16/10/2014.
Language
English
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