costs supply and perfect competition MCQs – Page 3

Practise focused costs supply and perfect competition questions with marked answers for exam preparation and subject revision.

costs supply and perfect competition Mcqs
41. In monopolistic competition of firms are making abnormal profit other firms will enter and ?
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A. The average cost will shift downwards

B. The average variable cost will increase

C. the demand curve will shift inwards

D. The marginal cost will shift outwards
42. In Porters five force model conditions are more favorable for firms within an industry if ?
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A. Buyer power is high

B. Entry threat is low

C. Substitute threat is high

D. Supplier power is high

43. If a long run average cost curve is falling form left to right this is an example of ?
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A. constant returns to scale

B. increasing returns to scale

C. decreasing returns to scale

D. the minimum efficient scale

44. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
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A. At their lowest points

B. When they are increasing

C. When they are declining

D. When marginal revenue is zero

45. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
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A. perfectly elastic

B. upward sloping

C. perfectly inelastic

D. downward sloping

46. For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?
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A. SMC below SAVC, LMC bellow LAC

B. SMC below SAVC, LMC above LAC

C. SMC, LMC

D. SMC above SAVC, LMC above LAC
47. Effective branding will tend to make ?
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A. Supply more price inelastic

B. Demand more income elastic

C. Demand more price inelastic

D. Supply more income elastic
48. If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
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A. an increase the price of the good and an increase in the number of firms in the market

B. no impact on either the price of the good or the number of firms in the market

C. an increase in the number of firms in the market but no increase in the price of the good

D. an increase the price of the good but no increase in the number of firms in the market

49. In monopolistic competition ?
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A. There are few buyers

B. There is one seller

C. There are few sellers

D. There are many sellers

50. Short run average total costs are equals to the sum of ____ and _____?
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A. Short run variable costs, profit

B. Short run average variable costs, profit

C. Short run average variable costs, profit run average fixed costs

D. Short run opportunity costs, profit