AP (Advanced Placement) Microeconomics: Questions 239 - 243 of 398

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Question 239

Question

MCQ▾

What are Veblen goods?

Choices

Choice (5)Response

a.

Goods that need to be consumed in the same proportion

b.

When price rises, the quantity demanded also rises

c.

When income increases, the demand for the good falls

d.

Goods that are exchanged for each other at a constant rate

e.

All of the above

Question 240

Question

MCQ▾

In Cournot equilibrium level of output, the industry output is equal to

Choices

Choice (5)Response

a.

b.

c.

d.

e.

All of the above

Question 241

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 242

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 243

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

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