Increasing efficiency
Economies of scale
Diseconomies of scale
Increasing marginal returns
Correct answer is C
The long-run average cost (LRAC) curve shows the firm's lowest cost per unit at each level of output, assuming that all factors of production are variable.
As long as the LRAC curve is declining, then internal economies of scale are being exploited. If LRAC is falling when output is increasing, then the firm is experiencing economies of scale. If it is rising, it means the firm is experiencing diseconomies of scale.
A firm enjoying economies of scale is said to be
Reducing average cost as production increases
Benefiting from the activities of other firms
Maximizing profits as production increases
Having an upward-sloping average cost curve
Correct answer is A
As long as the Long run average cost curve is declining, then internal economies of scale are being exploited. If LRAC is falling when output is increasing, then the firm is experiencing economies of scale.
Average product is less than marginal product when
There is constant returns to scale
There is increasing returns to scale
There is decreasing returns to scale
Diminishing returns set in
Correct answer is C
No explanation has been provided for this answer.
In order to reduce hardship faced by consumers due to high prices government can introduce
Maximum prices
Commodity boards
Minimum prices
Price control boards
Correct answer is A
Price controls are government-mandated minimum or maximum prices that can be charged for specified goods.
The government would normally fix a maximum price at which goods are to be sold. Maximum prices can reduce the price of food to make it more affordable to the citizens and reduce hardship and exploitation from sellers. But the problem is a maximum price may lead to lower supply and a shortage.
In perfect competition, price is determined by the
Government
Sellers
Buyers
Market
Correct answer is D
The price in perfect competition is determined by market forces which is demand and supply. There is one market price in perfect competition, firms can't charge different prices as they are selling identical products. In perfect competition the firms and sellers are price takers.