Question:

The Long run Average Cost curve (LAC) in modern cost theory isroughly

A.

u shaped

B.

saucer shaped

C.

l shaped

D.

rectangular hyperbola

Answer» d. rectangular hyperbola

Question:

Third degree price discrimination occurs when the monopolist charges different prices forthe same commodity in different

A.

Markets

B.

places

C.

continents

D.

countries

Answer» a. Markets

Question:

By representing amounts of proceeds by all entrepreneurs along the Y axis and volumes of employment along the X-axis, we can draw——–curves.

A.

Employment

B.

Consumption and Savings

C.

Revenue and employment

D.

Aggregate supply and demand

Answer» a. Employment

Question:

The concept of kinked demand curve is related to

A.

Paul M sweezy

B.

Joan robinson

C.

E H Chamberline

D.

E L Edgeworth

Answer» a. Paul M sweezy

Question:

A natural monopoly has a declining ________ over a large range of output

A.

long run marginal cost

B.

short run marginal cost

C.

long run average cost

D.

long run marginal cost

Answer» c. long run average cost

Question:

________ is one organization created from a formal agreement between a group of producers of a good or service, to regulate supply in an effort to regulate or manipulateprices.

A.

industry

B.

firm

C.

monopoly

D.

cartel

Answer» d. cartel