EconsTrivia

Which of the following is a characteristic of a perfectly competitive market?

• Few sellers

• Differentiated products

• Barriers to entry

• Many buyers and sellers

What is the opportunity cost of a decision?

• The monetary cost of the decision

• The benefit of the chosen option

• The value of the next best alternative foregone

• The total cost of all alternatives

Marginal cost is defined as:

• Total cost divided by quantity

• The cost of producing one more unit

• Fixed cost plus variable cost

• The cost of all units produced

A good is considered elastic if:

• Demand changes little with price

• Demand changes significantly with price

• Supply is fixed

• It is a necessity

Which of the following shifts the demand curve to the right?

• A decrease in income (for a normal good)

• A decrease in the price of the good

• An increase in consumer income (for a normal good)

• A decrease in population

What is a price ceiling?

• A minimum legal price

• A maximum legal price

• A market equilibrium price

• A government subsidy

In the short run, which cost is considered fixed?

• Labor cost

• Raw material cost

• Rent on factory space

• Utility bills

What does the term 'diminishing marginal utility' mean?

• Utility increases with each unit consumed

• Total utility decreases with consumption

• Additional satisfaction decreases with each additional unit consumed

• Marginal cost increases with utility

A monopolist maximizes profit where:

• Price = Marginal Cost

• Marginal Revenue = Marginal Cost

• Price = Average Total Cost

• Total Revenue = Total Cost

Which market structure has the most control over price?

• Perfect competition

• Monopolistic competition

• Oligopoly

• Monopoly