Tag: A-Level

In perfect competition ……. ?

Select ONE answer:

1. normal profit.
2. marginal revenue.
3. economic profit.
4. marginal profit.

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

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In perfect competition ……. ?

Select ONE answer:

1. demand for the good or service is small relative to the minimum efficient scale of a single producer.
2. demand for the good or service can be small relative to the minimum efficient scale of a single producer as long as the goods or services are not identical.
3. the size of demand for the good or service relative to the minimum efficient scale of a single producer does not affect competition.
4. demand for the good or service is large relative to the minimum efficient scale of a single producer.

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.

Which of the following is NOT an assumption of perfect competition?

Select ONE answer:

1. each firm sells an identical product
2. many buyers
3. many firms
4. restricted entry into the industry

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.

When long-run average cost increases as output increases there are …….?

Select ONE answer:

1. Constant returns to scale.
2. Economies of scale.
3. Diseconomies of scale.
4. None of the above.

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.

If Apple could produce more computers at lower long-run average cost by increasing the quantity of the inputs it uses, Apple definitely would experience …….?

Select ONE answer:

1. Decreasing marginal returns.
2. Economies of scale.
3. Increasing marginal returns.
4. Diseconomies of scale.

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 2

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