Post Utme Economics Past Questions and Answers

Question 641:

The demand curve facing the pure monopolist is ____________

A. Perfectly price elastic
B. Perfectly price inelastic
C. Negatively sloped
D. Positively sloped

Question 642:

The law of diminishing returns begins to operate when the ____________

A. Total product begins to rise
B. Total product begins to fall
C. Marginal product begins to rise
D. Marginal product begins to fall

Question 643:

A firm's declining long run average cost curve over some ranges of output can be explained by ____________

A. Increasing costs
B. Diminishing returns
C. Increasing returns to scale
D. Decreasing returns to scale

Question 644:

If an oligopolist incurs losses in the short run, then in the long run ____________

A. It will stay in business
B. It will go out of business
C. It will break even
D. It will merge with other firms

Question 645:

A firm maximizes its total profits when ____________

A. Total revenue equals total cost
B. Total cost exceeds total revenue by the greatest amount
C. Total revenue exceeds total cost by the greatest amount
D. It is at the break-even point