AP (Advanced Placement) Microeconomics: Questions 255 - 257 of 398

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Question 255

Question

MCQ▾

How is Stackelberg equilibrium determined?

Choices

Choice (5)Response

a.

The point of intersection of the reaction curves of firm 1 and firm 2

b.

The point of tangency between the reaction curve of firm 1 and isoprofit curve of firm 1

c.

The point of tangency between the reaction curve of firm 2 and isoprofit curve of firm 2

d.

Point of intersection of the isoprofit curves of firm 1 and firm 2

e.

All of the above

Question 256

Question

Assertion-Reason▾

Assertion(Ꭺ)

Value of marginal product in perfect competition ⩾ value of marginal product in monopolistic competition.

Reason(Ꭱ)

Elasticity of demand is infinity in a perfectly competitive market; elasticity of demand is greater than 1 in monopolistic competition

Choices

Choice (5)Response

a.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

b.

Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ

c.

Ꭺ is true but Ꭱ is false

d.

Ꭺ is false but Ꭱ is true

e.

Both Ꭺ and Ꭱ are false

Question 257

Question

MCQ▾

In the gravity which factors influence size and flow of bilateral trade between two countries?

Choices

Choice (5)Response

a.

Comparative advantage in the production of a good

b.

Factor endowments

c.

GDP of the two countries and distance between the two countries

d.

Absolute advantage in the production of a good

e.

Question does not provide sufficient data or is vague

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