Question

In: Economics

1: Marginal revenue product equals a. marginal revenue multiplied by marginal product b. marginal product multiplied...

1:

Marginal revenue product equals

	a.	marginal revenue multiplied by marginal product
	b.	marginal product multiplied by total revenue
	c.	total revenue multiplied by total product
	d.	marginal revenue multiplied by total product

2:

The long-run is a period of time

	a.	during which at least one input is variable
	b.	during which at least one input is fixed
	c.	sufficient to vary all inputs in the production process
	d.	greater than one year

3:

Marginal cost equals

	a.	average variable cost at its maximum point
	b.	the change in total fixed cost divided by the change in quantity
	c.	the change in total variable cost divided by the change in quantity
	d.	total cost divided by quantity

4:

The unique characteristic of a firm in perfectly competitive market equilibrium is

	a.	MR continues to decrease
	b.	P > AC
	c.	P > MR
	d.	P = MC

5:

The distinction between a firm and an industry does not exist in

	a.	imperfectly ccompetitive markets
	b.	Oligopoly
	c.	monopoly
	d.	perfect competition

6:

In a perfectly competitive market

	a.	sellers and buyers have perfect information
	b.	entry and exit are difficult
	c.	sellers produce similar, but not identical products
	d.	each seller can affect the market price by changing output

Expert Solution

1) (a) marginal revenue * marginal product

marginal revenue product tells the additional revenue earn by adding an additional labour

2) (c) sufficient to vary all inputs in production process

long run period is the period in which firm has all the variable cost and have time to vary then according to production process

3) (c) change in total variable cost divide by change in Quantity

marginal cost tells the additional cost by producing extra 1 unit of output

4) (d) P= MC

market equilibrium conditions is MR= MCand mc shoud be rising but in perfect competition p=MR=MC at point of equilibrium

5) (d) Perfect competition

The distinguishe between firm and industry doesnot exist in perfect competition Because firm has no power to influence the market price

6) (a) seller and buyer have perfect information

in perfect competition all the buyers and sellers have perfect knowledge because in this market homogeneous product is sell

Rahul Sunny answered 2 years ago

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