AP (Advanced Placement) Macroeconomics: Questions 523 - 526 of 750

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Question 523

Question

MCQ▾

Identify conditions of natural monopoly

Choices

Choice (5)Response

a.

Large fixed costs and small marginal costs

b.

MR intersects AC underneath the demand curve

c.

MC intersects demand curve above the AC curve

d.

None of the above

e.

Question does not provide sufficient data or is vague

Question 524

Question

MCQ▾

Where does the optimal output combination lie in a cartel solution?

Choices

Choice (5)Response

a.

Point of tangency of the two isoprofit curves

b.

AC of the two firms is minimised

c.

Intersection of the isoprofit lines of the two firms

d.

MC of the two firms is minimised

e.

All of the above

Question 525

Question

MCQ▾

Which cost can be computed using opportunity cost?

Choices

Choice (5)Response

a.

Explicit cost

b.

Historical cost

c.

Incremental cost

d.

Implicit cost

e.

None of the above

Question 526

Question

MCQ▾

Hicks has expressed that in the theory of business cycle, there are limits constraining the explosive situation when the economy is moving upswing. What is/are the reason/s for this limit?

Choices

Choice (5)Response

a.

Investment lags

b.

Full employment level

c.

Both a. and b. are correct

d.

Question does not provide sufficient data or is vague

e.

None of the above

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