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Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases?

A. average costs to remain constant
B. average costs to decrease
C. average costs to increase
D. marginal costs to increase

Engineers for the All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ?

A. If TP is declining, then AP is negative
B. If AP = MP, then total product is at a maximum.
C. If AP exceeds MP then AP is falling
D. If AP is at a maximum, then MP is also,

Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP) ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

The short run, as economists use the phrase, in characterized by ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
The short run, as economists use the phrase, in characterized by ?

A. at least one fixed factor of production and firms neither leaving nor entering the industry.
B. no variable inputs – that is, all of the factors of production are fixed
C. all inputs being variable
D. a period where the law of diminishing returns does not hold

The short run, as economists use the phrase, in characterized by ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

Which of the following is most likely to be a variable cost for a firm ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
Which of the following is most likely to be a variable cost for a firm ?

A. The franchiser’s fee that a restaurant must pay to the national restaurant chain
B. The payroll taxes that are paid on employee wages.
C. The monthly rent on office space that it leased for a year
D. The interest payments made on loans.

Which of the following is most likely to be a variable cost for a firm ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

Profit-maximizing firms want to maximize the difference between ?

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly /
Profit-maximizing firms want to maximize the difference between ?

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

Profit-maximizing firms want to maximize the difference between ? Read More »

Economics Mcqs, Profit Maximizing Under Perfect Competition And Monopoly

Criticisms against the North American Free Trade Agreement include all of the following except ?

Economics Mcqs, Regional Trading Arrangements /
Criticisms against the North American Free Trade Agreement include all of the following except ?

A. wages in the United States will rise relative to Mexican wages
B. American jobs will be lost to workers in Mexico
C. The environment is not adequately protected by NAFTA
D. None of the above

Criticisms against the North American Free Trade Agreement include all of the following except ? Read More »

Economics Mcqs, Regional Trading Arrangements

Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

Economics Mcqs, Regional Trading Arrangements /
Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

A. relatively high; relatively large
B. relatively high; relatively small
C. relatively low ; relatively large
D. relatively low ; relatively small

Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________? Read More »

Economics Mcqs, Regional Trading Arrangements

_________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?

Economics Mcqs, Regional Trading Arrangements /
_________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ?

A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion

_________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pregroup levels ? Read More »

Economics Mcqs, Regional Trading Arrangements

________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?

Economics Mcqs, Regional Trading Arrangements /
________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?

A. trade creation
B. trade diversion
C. trade exclusion
D. trade distortion

________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ? Read More »

Economics Mcqs, Regional Trading Arrangements