1. Which market structure has a value of price that is equal to marginal revenue?

A.Perfect competition

B.Monopolistic competition

C. Oligopoly

D.Monopoly

2. What makes a natural monopoly to occur? *

A.Economies of scale for a product.

B. Control over an important resource.

C.A copyright.

D.A government franchise.

3.When prices are set illegally by leaders of competition firms or production levels for certain goods, this is known as a *

A.patent.

B.collusion.

C. copyright.

D.kinked demand curve.

4.A firm is selling a product for RM10 per unit. The fixed cost for running the business is RM40,000; while the variable cost is RM6 per unit. How many units of the product should be produced and sold in order for the firm to achieve its break-even point?

A.8,000 units

B.10,000 units

C.12,000 units

D.14,000 units

5. In the production of corn, below are the variable resources involved in the production process except *

A.The usage of seed and fertilizer when planting the crop.

B.The number of labors hired in cultivating the corn.

C.The usage of machine by the farmer in planting and cultivating the corn.

D.The number of hours that the farmer spends in cultivating the corn.

6.The law of diminishing returns only applies in cases where *

A. there is increasing scarcity of factors of production.

B. the price of extra units of a factor is increasing.

C.there is at least one fixed factor of production.

D.capital is a variable input.