Economics - Study Mode
[#441] In the very short run, plays a dominant role in price determination
Correct Answer
(A) Demand
[#442] The demand curve, when the demand is perfectly elastic, is
Correct Answer
(C) Horizontal
[#443] Marginal cost is
Correct Answer
(B) $$MC = T{C_n} - T{C_{left( {n - 1}
ight)}}$$
[#444] Consider the following statements. 1. One way the government can induce a monopolist to expand his output is by imposing a price ceiling that make the monopolist lower his price. 2. MC = MR = AC = AR shows the equilibrium position of the competitive firm. 3. One way the government can induce a monopolist to expand his output by imposing a price floor that makes the monopolist raise his price. 4. One way the government can induce a monopolist to expand his output by imposing a specific tax on the monopolist output. Which of the statement(s) given above is/are correct?
Correct Answer
(C) Only 2
[#445] The short-run cost function of a firm is as follows: TC = 200 + 5Q + 2Q 2 Where TC = Total Cost, Q = Physical units of the product of the firm What would be the level of optimum output ?
Correct Answer
(B) 10