Economics Mcqs

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

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

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

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

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

Which of the following assumptions underlying input-output analysis raises about its validity ?

by
Which of the following assumptions underlying input-output analysis raises about its validity ?

I- The technical coefficients are fixed which means so substitution between inputs occurs
II- There are no externalities so that the total effect of carrying out several activities is the sum of the separate effects
III- Each good is produced by only one industry and each industry produces only one commodity
IV- There is no technical change
A. I and II only
B. I, II, III only
C. I, II, IV only
D. I, II, III and IV