Question # 1

When marginal revenue equals marginal cost

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Total revenue equal total cost

There is the biggest positive difference between total revenue and total cost

there is the biggest negative difference between total revenue and total cost.

Profits are zero

In monopolistic competition

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Demand is perfectly elastic

Products are homogeneous

Marginal revenue = pirce

The marginal revenue is below the demand curve and diverges

A model of game theory of oligopoly is known as the

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Prisoner's dilemma

Monopoly cell

Jailhouse sentence

Jury box

In the long run in perfect competition

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Price = average= cost = marginal cost

Price = average cost = total cost

The price covers fixed cost

total revenue = total variable cost

In monopoly which of the following is true.

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There are many buyers and sellers

There is one main buyers

There is one main seller

The actions of one firm do not affect the market price and quantity.

Which of the following would increase aggregate demand.

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Increasing saving

Increasing import spending

Increasing taxation revenue

increased investment

Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are.

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Market prices

Sticky prices

Fixed prices

Regulatory prices

Less Developed countries lend to have

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A high average age

A slow population growth rate

High life expectancy

A low literacy rate

If employees cannot accept a job because of the costs of moving this is known as.

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Occupational immobility

Cyclical unemployment

Structural immobility

Geographical immobility

The public sector includes.

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Investors owning companies

Government ownership of assets

Market forces of supply and demand

All trade via barter

If marginal product is below average product.

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The total product will fall

The average product will fall

Average variable costs will fall

Total revenue will fall

Assuming a downward sloping demand curve and upward sloping supply curve a higher equilibrium price may be caused by.

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An fall in demand

An increase in supply

Improvements in production technology

An increase in demand

Which of the following is not one of the four Ps in marketing.

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Product

Price

Place

Presence

Government policies that focus on increasing production rather than demand are called.

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Fiscal policies

Monetary policies

Incomes policies

Supply side policies

If the fprice in a market is fixed by the government below equilibrium.

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There is excess equilibrium

There is excess supply

There is excess demand

There is equilibrium

The agricultural price support program is an example of.

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A price celling

A price floor

Equilibrium pricing

None of these

According to schumpater

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Monopolies are inefficient

Monopoly profits act as an incentive for innovation

Monopolies are allocatively efficient

Monopolies are productively efficient

In monopoly in long run equilibrium.

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The firm is productively effieient

The firm is allocatively inefficient

The firm produces where marginal cost is less than marginal revenue

The firm produces at the sociality optimal level

According to the law of diminishing utility.

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Utility is at a maximum with the first unit

Increasing units of consumption increase the marginal utility

Marginal product will fall as more units are consumed

Total utility will rise at a falling rate as more units are consumed

A movement along the demand curve may be caused by

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A change in income

A change en the number of buyers

A change in advertising

A shift in supply

If injection are less than with drawls at the full employment level of national income there is.

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an inflationary gap

Equilibrium

A deflationary gap

Hyperinflation

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