Month: December 2018

John’s Pizza is a perfectly competitive firm. The firm’s costs are shown in the table below.

If the market price is $15, the firm will ……. ?

Select ONE answer:

1. stay in the industry in the long run.
2. shut down.
3. make an economic profit.
4. leave the industry in the long run.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.

John’s Pizza is a perfectly competitive firm. The firm’s costs are shown in the table below.

If the market price is £20, how much economic profit does the firm make?

Select ONE answer:

1. £12
2. -£20
3. £0
4. -£10

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.

A firm’s shutdown point is the output and price at which the firm just covers its ……… ?

Select ONE answer:

1. marginal cost.
2. total variable cost.
3. total cost.
4. total fixed cost.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 4

This work is licensed under a Creative Commons Attribution 4.0 International License.

For a perfectly competitive firm, the shutdown point is ……… ?

Select ONE answer:

1. the price at which economic profit is zero.
2. the price at which total opportunity cost is zero.
3. the level of output at which price equals minimum average variable cost.
4. the level of output at which price equals minimum average total cost.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 3

This work is licensed under a Creative Commons Attribution 4.0 International License.

The figure below depicts the marginal revenue and costs of a perfectly competitive firm. The marginal cost of the last unit produced ……… ?

Select ONE answer:

1. $16 per unit.
2. $4 per unit.
3. $8 per unit.
4. None of the above answers is correct.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 1

This work is licensed under a Creative Commons Attribution 4.0 International License.