Economics Practice MCQ Page 18
Multiple Choice questions for Economics in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1524 In a constant-cost industry ,an increase in demand
- increase price in the short run but not in the long run.
- increases price in both the short run and long run.
- does not change price in both the short run or long run.
- increases output in the short run but not in the long run.
- does not change output in the short run or long run.
Question: 1525 The long -run supply curve of an increasing cost industry
- is horizontal.
- is the sum of the marginal cost curve of firms in the industry.
- slopes upward but is flatter than the short -run supply curve.
- is steeper than the short -run supply curve.
- is the sum of the upward -sloping part of firms long-run average cost curves.
Question: 1526 Differential rents earned by firms are
- explicit costs.
- implicit costs.
- economic profits.
- zero in the long run.
- impossible under perfect competition.
Question: 1543 Which of the following is inconsistent with pure monopoly ?
- Significant barriers to entry .
- Economies of scale .
- Price-taking buyers.
- Producers suffering losses.
- Close substitutes for the good.
Question: 1545 A price searching firm
- face a fixed market price and chooses its level of output .
- faces a fixed amount of output and chooses its price.
- can choose any combination of output and price.
- can choose any combination of output and price lying on its supply curve.
- can choose any combination of output and price lying on the demand curve for its product.
Question: 1546 If price equals marginal revenue at a positive level of output ,then
- demand is perfectly elastic.
- demand is elastic,but not perfectly elastic.
- demand is unitary elastic.
- demand is inelastic,but not perfectly inelastic.
- demand is perfectly inelastic.
Question: 1547 If marginal revenue is zero at a positive level of output ,then
- demand is perfectly elastic.
- demand is elastic,but not perfectly elastic.
- demand is unitary elastic.
- demand is inelastic,but not perfectly inelastic.
- demand is perfectly inelastic.
Question: 1548 A firm's average revenue is
- the same as marginal revenue .
- unrelated to marginal revenue.
- the same as its product's price.
- unrelated to price.
- equal to average total cost.
Question: 1550 If a profit-maximizing monopoly 's marginal revenue exeeds its marginal cost,then it should
- raise its price.
- not change output or price .
- lower its output .
- lower its price.
- leave the industry.
Question: 1551 If price is less than average total cost for a monopoly ,then
- it is suffering losses.
- it can improve profits by increasing output.
- it can improve profits by reducing output.
- it can improve profits by increasing price.
- marginal revenue exceeds marginal cost.
Question: 1552 In a pure monopoly,then firm may make a long -run profit because
- monopoly firms are more efficient than competitive ones.
- barriers prevent new firms from entering the market.
- a monopoly can buy input more cheaply .
- it will operate at minimum average cost.
- its demand curve is highly elastic.
Question: 1554 The supply curve of a pure monopoly is
- its marginal cost curve above average variable cost.
- its marginal cost curve above marginal revenue.
- its marginal cost curve above average total cost.
- its marginal cost curve above average revenue.
- nonexistent.
Answers to the questions of Economics on this page
Following list gives the correct choice for the answer of the Economics mcqs.
1524 . A
1525 . C
1526 . B
1543 . E
1545 . E
1546 . A
1547 . C
1548 . C
1550 . D
1551 . A
1552 . B
1554 . E
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