ECO401 Economics Solve Mid Term Paper Fall Semester December 2012

[Vuhelper]

[SIZE="3"]ECO401 Economics Solve Mid Term Paper Fall Semester December 2012[/SIZE]



A market with few entry barriers and with many firms that sell differentiated products is:

• Purely competitive.
• A monopoly.
• Monopolistically competitive.
• Oligopolistic. (correct)

The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the total fixed cost?
• 5Q.
• 5.
• 5 + (200/Q).
None of the given options (correct)

Costs determine all of the following EXCEPT:
• Demand for a product. -(correct)
• Firm's behavior.
• How firms should expand?
• Firm's profitability.

A market with few entry barriers and with many firms that sell differentiated products is:

► Purely competitive.
► A monopoly.
► Monopolistically competitive.
► Oligopolistic. (Correct)

Marginal profit is equal to:
► Marginal revenue minus marginal cost. (correct)
► Marginal revenue plus marginal cost.
► Marginal cost minus marginal revenue.
► Marginal revenue times marginal cost.

If current output is less than the profit-maximizing output then which of the following must be TRUE?
► Total revenue is less than total cost.
► Average revenue is less than average cost.
► Marginal revenue is less than marginal cost.
► Marginal revenue is greater than marginal cost. (correct)

If a simultaneous and equal percentage decrease in the use of all physical inputs leads to a larger percentage decrease in physical output, a firm’s production function is said to exhibit:

► Decreasing returns to scale. (correct)
► Constant returns to scale.
► Increasing returns to scale.
► Diseconomies of scale

Long Question
QNo: Long Run And Short Run
QNo2 : A Graph below and tell about the lines
QNo 3: Monopolistic Competition, oligopoly
MARGINAL
labor