Economics MCQs

A. Increase should
B. Decrease output
C. Keep output the same because profits are maximized when marginal revenue exceeds marginal cost
D. Raise the price

A. The price is greater than the marginal revenue
B. The price is less than the marginal revenue
C. There is no relation
D. They are equal

A. Charge a higher price
B. Produce a lower quantity of the product
C. Make a greater amount of economic profit
D. All of the above

A. Charging different prices on the basis of race
B. Charging different prices for goods with different costs of production
C. Charging different prices based on cost-of-service differences
D. Selling a certain product of given quality and cost per unit at different prices to different buyers

A. The value of all coins and currency in circulation at any time
B. Anything that is generally accepted as a medium of exchange
C. The same as income
D. All of the above

A. Higher prices and lower output
B. Higher prices and higher output
C. Lower prices and lower output
D. Lower prices and higher output

A. Cause the monopolist to exit the market
B. Improve efficieny
C. Raise the price of good
D. Attract additional firms to enter the market

A. Tends to be inefficient.
B. Usually lowers the cost of production dramatically.
C. Creates synergies between the newly acquired firm and other government-owned companies.
D. Does none of the things described in these answers

A. Will rise
B. Will fall
C. Will remain the same
D. Could either rise or fall depending on the elasticity of the monopolist’s supply curve

A. Monopolies are inefficient
B. Monopoly profits ac as an incentive for innovation
C. Monopolies are alocatively efficient
D. Monopolies are productively efficient