Internal economies of scale are expected to bring about?
A. an increase in short-run average cost B. an increase in long-run average cost C. a decrease in long-run average cost D. a decrease in short-run average cost Correct Answer: Option B – an increase in long-run average cost
A firm’s shut-down point is reach when the average revenue fails to cover the?
A. average variable cost B. marginal cost C. average total cost D. average fixed cost Correct Answer: Option B – marginal cost
A consumer’s scale of preference is an arrangement of his?
A. scarce resources in order of importance B. needs in order of importance C. sources of income and their importances D. requirements and how to satisfy them Correct Answer: Option B – needs in order of importance
The fixing of the price of an item above or below the equilibrium price is most likely to take place in a?
A. centrally planned economy B. free market economy C. developed economy D. mixed economy Correct Answer: Option A – centrally planned economyProducts
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