Economics Mcqs

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

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. Horizontal
B. vertical
C. downward slog
D. elastic

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

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

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

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

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