If firms can neither enter nor leaves an industry, the relevant time period is the ?
A. immediate run
B. intermediate run
C. long run
D. short run
QuizMaster
The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
The cosmetics industry is not considered by economists to be a good example of perfect competition because ?
A. there are many EU and government health controls on cosmetic products
B. there are a very large number of firms in the industry
C. firms spend a large amount of money on advertising
D. profit margins are very high for both producers and retailers
If a firm has some degree of market power, then output price ?
If a firm has some degree of market power, then output price ?
A. no longer influences the amount demand of the firm’s product
B. becomes a decision variable for the firm
C. is guaranteed to be above a firm’s average cost.
D. is determined by the actions of other firms in the industry
Market power is ?
Market power is ?
A. a firm’s ability to monopolies a market completely.
B. a firm’s ability to raise price without losing all demand for its product
C. a firm’s ability to sell any amount of output it desires at the market-determined price.
D. a firm’s ability to charge any price it likes
A firm will shut down in the short run if ?
A firm will shut down in the short run if ?
A. fixed costs exceed revenues.
B. it is suffering a loss.
C. variable costs exceed revenues
D. total costs exceed revenues
A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?
A. £35
B. £15
C. £30
D. £60
The formula for average variable cost (AVC) is ?
The formula for average variable cost (AVC) is ?
A. DTVC/Dq
B. q/TVC
C. Dq/DTVC
D. TVC/q
A graph showing all the combinations capital and labor available for a given total cost is the ?
A graph showing all the combinations capital and labor available for a given total cost is the ?
A. expenditure set
B. isocost line.
C. budget constraint
D. isoquant
A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
A graph showing all the combinations of capital and labor that can used to produce a given amount of output is ?
A. an indifference curves.
B. an isoquant.
C. an isocost line
D. a production functions
Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
A. downward slog to the right
B. U-shaped
C. Horizontal
D. upward slog to the right