Market Structures - Jamb Economics Past Questions and Answers

Question 61:

• JAMB 1991

The firm portrayed is selling in

A. A purely competitive market
B. A market in which demand elastic at all prices
C. An imperfectly competitive markket
D. A market in which companies produce homogeneous commodities

Question 62:

• JAMB 1991

In combining inputs x and y, the entrepreneur obtains the maximum output from a given money outlay when

A. \( \begin{matrix} P_ x = P _ y \\ MP _ x = MP _ y \end{matrix} \)
B. \(\begin{matrix} MP _ x = P _ x \\ MP _ y = P _ y \end{matrix}\)
C. P _x. MP _x = P _y. MP _y
D. P _x P _y = MP _x. MP _y

Question 63:

• JAMB 1993

At equilibrium, one of the distinctive features of monopoly compared with perfect competition is that in the former?`

A. Price is always equal to marginal cost
B. Supply is always equal to demand
C. Price is always higher than marginal cost
D. There are always many buyers and many sellers

Question 64:

• JAMB 1993

In the diagram above, what is the lowest possible price the monopolist could charge and still break even without there being excess demand?

A. P_d
B. P₂
C. P₃
D. P₄

Question 65:

• JAMB 1994

The basic idea behind brand differentiation under an imperfect market arrangement is to?

A. Stimulate demand for rival products
B. Create demand for the particular product
C. Enable the product penetrate the market
D. Enable the product to complete with others