Short-run and long-run equilibrium positions - Jamb Economics Past Questions and Answers

Question 1:

• 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 2:

• 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 3:

• JAMB 2000

At the point where marginal revenue of a monopolist is equal zero, its total revenue will be?

A. Falling
B. Rising
C. Equal to zero
D. Maximum

Question 4:

• JAMB 2001

In the long-run, a monopolist maximized his profit when the marginal cost equals?

A. Total revenue
B. Marginal revenue
C. Average revenue
D. Price

Question 5:

• JAMB 2002

The short-run equilibrium output for a monopolist is determined by the?

A. Highest point on the total revenue curve
B. Minimum point on the average revenue and the average cost curve
C. Intersection of the average revenue and the average cost curves
D. Intersection of the marginal cost and marginal revenue curves