Economics MCQ Questions and Solutions with Explanations | Commerce

A. Zero economic profit is earned by the monopolist

B. Production takes place where the price is equal to long-run marginal cost and long-run average cost

C. Production takes place where long-run marginal cost is equal to marginal revenue, and the price is not below the long-run average cost

D. All of the above

A. a-1, b-2, c-3, d-4

B. a-2, b-1, c-3, d-4

C. a-2, b-4, c-1, d-3

D. a-3, b-1, c-2, d-4

A. perfectly elastic

B. perfectly inelastic

C. unit elastic

D. highly elastic

A. short run

B. market period

C. long run

D. secular run

A. $$MR{S_{xy}} = \frac{{{P_x}}}{{{P_y}}}$$

B. $$MR{S_{xy}} > \frac{{{P_x}}}{{{P_y}}}$$

C. $$MR{S_{xy}} < \frac{{{P_x}}}{{{P_y}}}$$

D. $$MR{S_{xy}} = {P_x}{P_y}$$

A. surpluses

B. losses needing subsidies

C. neither surpluses nor losses

D. a decline in output

A. everything depends on everything else

B. ceteris paribus

C. the equilibrium price of a goods or service depends on the balancing of the forces of demand and supply for that goods or services

D. the equilibrium price of a factor depends on the balancing of the forces of demand and supply for that factor

A. Only 1

B. Both 1 and 3

C. Both 3 and 4

D. All of the above

A. Monopolist

B. Oligopolist

C. Perfect competitor

D. Monopolistic competitor

A. Cash assistance

B. Marginal value

C. Deferred payment

D. Duty drawback