Question
Question 30 The equilibrium price and quantity of good X are $10 and 100 respectively. Government reduced the price of X to $8. As a
Question 30 The equilibrium price and quantity of good X are $10 and 100 respectively. Government reduced the price of X to $8. As a result, quantity demanded increased to 150 but quantity supplied went down to 80. So, the market outcome is
Question 30 options:
surplus of 50 |
shortage of 50 |
shortage of 1600 |
shortage of 560 |
Question 31
Minimum wage is
positive concept |
normative concept |
market concept |
equilibrium concept |
Question 32 Production function is
a technological relationship between inputs and output | |
expressed as a dependent-independent relationship between output and one or more inputs | |
may be a short run or a long run concept | |
all of the above |
Question 33 (5 points)
Assume the following production function: Q = f(L,K), where, Q= output, L = units of labor, K = units of capital. Now assume the producer found the following result in the short run
MPL > MPK
In order to maximize profit,the produce should
continue production with the same quantity of labor and capital |
should substitute labor for capital until MPL = MPK |
should substitute capital for labor until MPL = MPK |
should continue production until MPK > MPL |
Question 34
In which of the four output markets P = MC?
perfect competition |
monopolistic competition |
oligopoly |
monoply |
Question 35
In a perfectly competitive market, pure profit does not exist in the long run because of the assumption of
large number of buyers and sellers |
homogeneous product |
single price |
free entry and exit of firms |
Question 36
In which of the four markets, the producer may charge demand price?
perfect competition |
monopolistic competition |
oligopoly |
monopoly |
Question 37
Which economic condition must be satisfied for price discrimination to be possible?
Segmenting the market |
no resale of the product |
different elasticity of demand of the product |
all of the above |
Question 38
In an oligopoly market, price is not determined at the point of
MR =MC because
oligopolies are big business and they have significant market power |
oligopolies usually collude explicitly to fix price |
there is no unique MR curve |
all of the above |
Question 45
Compared to a competitive firm, a monopolist
produces less |
charges higher price |
may not follow MR = MC rule in setting price |
all of the above |
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