Question 1

The bus service to the areas where you live is

Accepted Answer

A)  highly contestable. 
B)  moderately contestable. 
C)  not contestable. 
D)  slightly contestable. 
A)  highly contestable. 
B)  moderately contestable. 
C)  not contestable. 
D)  slightly contestable.

Question 2

The following diagram shows a perfectly competitive industry and firm. Initial supernormal profits have attracted new firms into the industry.
  QL represents long- run equilibrium output of the firm because

Accepted Answer

A)  LRAC = ARL  
B)  Se > S1  
C)  P1 > PL  
D)  D1 > DL 
A)  LRAC = ARL  
B)  Se > S1  
C)  P1 > PL  
D)  D1 > DL

Question 3

If a firm experiences lower average costs of production as a consequence of producing a range of products, the firm is experiencing

Accepted Answer

A)  optimisation. 
B)  diversification. 
C)  modernisation. 
D)  economies of scope. 
E)  network economies. 
A)  optimisation. 
B)  diversification. 
C)  modernisation. 
D)  economies of scope. 
E)  network economies.

Question 4

The type of product sold is a key difference between a perfectly competitive industry and a monopolistically competitive industry.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is false?

Accepted Answer

A)  Participants in a contestable market are continually faced with competition or the threat of competition because entry is cheap. 
B)  In a contestable market with very few competitors market forces will guarantee that the firms produce efficiently or be driven out of business. 
C)  For a market to be contestable the product must be produced with a labour- intensive technology. 
D)  In a contestable market economic profits cannot persist in the long run. 
A)  Participants in a contestable market are continually faced with competition or the threat of competition because entry is cheap. 
B)  In a contestable market with very few competitors market forces will guarantee that the firms produce efficiently or be driven out of business. 
C)  For a market to be contestable the product must be produced with a labour- intensive technology. 
D)  In a contestable market economic profits cannot persist in the long run.

Question 6

What are concentration ratios?

Accepted Answer

Concentration rations are a way to asses

Question 7

In a contestable market, the threat of competition will be greater the lower the entry costs to the industry.

Accepted Answer

A) True 
 B)False

The bus service to the areas where you live is

The following diagram shows a perfectly competitive industry and firm. Initial supernormal profits have attracted new firms into the industry. Q_Lrepresents long- run equilibrium output of the firm because

If a firm experiences lower average costs of production as a consequence of producing a range of products, the firm is experiencing

The type of product sold is a key difference between a perfectly competitive industry and a monopolistically competitive industry.

Which of the following statements is false?

What are concentration ratios?

In a contestable market, the threat of competition will be greater the lower the entry costs to the industry.

The Business Environment and Business Economics

Economics and the World of Business

Business Organisations

The Working of Competitive Markets

Business in a Market Environment

Demand and the Consumer

Demand and the Firm

Products, Marketing and Advertising

Costs of Production

Revenue and Profit

Profit Maximisation Under Imperfect Competition

An Introduction to Business Strategy

Alternative Theories of the Firm

Growth Strategy

The Small-Firm Sector

Pricing Strategy

Labour Markets, Wages and Industrial Relations

Investment and the Employment of Capital

Reasons for Government Intervention in the Market

Government and the Firm

Government and the Market

Globalisation and Multinational Business

International Trade

Trading Blocs

The Macroeconomic Environment of Business

The Balance of Payments and Exchange Rates

Banking, Money and Interest Rates

Business Activity, Employment and Inflation

Demand-Side Policy

Supply-Side Policy

International Economic Policy

Filters

Exam 11: Profit Maximisation Under Perfect Competition and Monopoly

The bus service to the areas where you live is

The following diagram shows a perfectly competitive industry and firm. Initial supernormal profits have attracted new firms into the industry. QL represents long- run equilibrium output of the firm because

If a firm experiences lower average costs of production as a consequence of producing a range of products, the firm is experiencing

The type of product sold is a key difference between a perfectly competitive industry and a monopolistically competitive industry.

Which of the following statements is false?

What are concentration ratios?

In a contestable market, the threat of competition will be greater the lower the entry costs to the industry.

The Business Environment and Business Economics

Economics and the World of Business

Business Organisations

The Working of Competitive Markets

Business in a Market Environment

Demand and the Consumer

Demand and the Firm

Products, Marketing and Advertising

Costs of Production

Revenue and Profit

Profit Maximisation Under Imperfect Competition

An Introduction to Business Strategy

Alternative Theories of the Firm

Growth Strategy

The Small-Firm Sector

Pricing Strategy

Labour Markets, Wages and Industrial Relations

Investment and the Employment of Capital

Reasons for Government Intervention in the Market

Government and the Firm

Government and the Market

Globalisation and Multinational Business

International Trade

Trading Blocs

The Macroeconomic Environment of Business

The Balance of Payments and Exchange Rates

Banking, Money and Interest Rates

Business Activity, Employment and Inflation

Demand-Side Policy

Supply-Side Policy

International Economic Policy

Filters

The following diagram shows a perfectly competitive industry and firm. Initial supernormal profits have attracted new firms into the industry. Q_Lrepresents long- run equilibrium output of the firm because