AP (Advanced Placement) Microeconomics: Questions 113 - 115 of 398

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Question 113

Question

MCQ▾

Consider the following statements regarding the long run equilibrium in the monopolistic market.

  1. Firms are in no profit no loss situation.
  2. There is no entry or exit of the firms.

Which among the above statements are true? Answer from the code below:

Choices

Choice (5)Response

a.

Only 1 is true

b.

Only 2 is true

c.

Neither 1 nor 2 is true

d.

1 and 2 are true

e.

All of the above

Question 114

Appeared in Year: 2017 (NET)

Question

MCQ▾

Which of the following is not true for perfect competition? (November Paper II)

Choices

Choice (5)Response

a.

Firms earn normal profits

b.

Price = LAC

c.

In the long run firms operate at the minimum point of average cost

d.

Market demand curve for a commodity is horizontal to X-axis

e.

Question does not provide sufficient data or is vague

Question 115

Appeared in Year: 2017 (NET)

Question

MCQ▾

Consider the following diagram with two parallel demand curves AB and CD:

Two Parallel Demand Curves AB and CD

The price elasticity of demand at: (November Paper II)

Choices

Choice (5)Response

a.

Points R and S is infinity

b.

Point R is less than that at point S

c.

Points R and S is equal

d.

Point R is greater than that at point S

e.

None of the above

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