The long-run market supply curve ?

A. Is always more elastic than the short-run market supply curve.
B. Is always perfectly elastic
C. Has the same elasticity as the short run market supply curve
D. Is always less elastic than the short-run market supply curve

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 ?

A. Downward sloping
B. Perfectly inelastic
C. Upward sloping
D. Perfectly elastic

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 ?

A. An increase in the number of firms in the market but no increase in the price of the good
B. An increase the price of the good and an increase in the number of firms in the market
C. An increase the price of the good but no increase in the number of firms in the market
D. No impact on either the price of the good or the number of firms in the market

If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?

A. Decreased production
B. Maintained production at the current level
C. Temporarily shut down.
D. Increased production

In the short run firms in perfect competition will still produce provided ?

A. The price covers average variable cost
B. The price covers variable cost
C. The price covers average fixed cost
D. The price covers fixed costs

For a perfectly competitive firm ?

A. Price equals marginal revenue
B. Price is greater than marginal revenue
C. Price equals total revenue
D. Price equals total cost

Which of the following market would most closely satisfy the requirements for a competitive market ?

A. Electricity
B. Cable television
C. Cola
D. Milk

For a competitive firm, marginal revenue is ?

A. Total revenue divided by the quantity sold
B. Equal to the quantity of the good sold
C. Average revenue divided by the quantity sold
D. Equal to the price of the good sold

Branko Horvat’s historical review of the last two and one-half century indicates that in large part market or decentralized socialism ?

A. Has failed
B. Works well in utopia
C. Is widely used in sub saharan africa
D. Is the only way to eradicate poverty?

Which of the following assumptions underlying input-output analysis raises about its validity ?

I- The technical coefficients are fixed which means so substitution between inputs occurs
Ii- there are no externalities so that the total effect of carrying out several activities is the sum of the separate effects
Iii- each good is produced by only one industry and each industry produces only one commodity
Iv- there is no technical change