Patents and copyrights enable monopolists to
Determine the quality of their products
Determine the scale of their products
Restrict information flow to new firms
Restrict entry of new firms
Correct answer is B
Patents are used to prevent others from making or selling an invention, example computers, phones etc. while Copyright is the exclusive right that the owner of an intellectual property has. It protects the creator's work from unauthorized duplication or use. Example music and movies production.
In a monopolistic setting, it is used to determine the size or extent of a producing a particular product. This is to prevent other market players from making or producing the product without permission.
Diminishing returns
Constant returns to scale
Increasing returns to scale
Decreasing returns to scale
Correct answer is D
A decreasing returns to scale occurs when the proportion of output is less than the desired increased input during the production process. For example, if input is increased by 3 times, but output is reduced 2 times, the firm or economy has experienced decreasing returns to scale.
The long-run average cost curve touches to the short-run average cost curves at the
Minimum points of all short run average cost curves
Declining points of all short-run average cost curves
Minimum point of only one of the short-run cost curves
Rising points of all short-run average cost curves
Correct answer is D
No explanation has been provided for this answer.
The equilibrium point of a firm is attained at the point where the isoquant is
Greater than the isocost
Less than the isocost
Tangent to the isocost
Greater than the output
Correct answer is C
The firm is in equilibrium at the point where the isoquant curve is tangent to the iso-cost line. At this point, the firm is maximising its output level by employing the optimal combination of capital and labour.
The table above shows a demand schedule for eggs. What is the equilibrium price?
N100
N110
N60
N80
Correct answer is D
No explanation has been provided for this answer.
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