Which of the following producer is closest to being a monopolist?
A baker
A wheat farmer
A large chain store
An automobile plant
Correct answer is D
No explanation has been provided for this answer.
The characteristic of entry and exit ensures that firms
Earn excess profit
Earn normal profit
Break-even
Expand their operations
Correct answer is D
Free entry and exit are economic terms used to describe the condition of a free market economic
Free entry is a condition in which sellers can freely enter the market with its product to make sales. Free exit occurs when a firm can leave the market without limit when economic losses are being incurred. Firms tend to expand in their operations as they grow, the concept of free entry and exit avails them the opportunity of entering and leaving a market at will.
N396
N323
N250
N146
Correct answer is D
No explanation has been provided for this answer.
The use of modern weaving machines in the production of local fabric will result in
An increase in the demand for labour
A decrease in the demand for labour
An increase in wages
A decrease in wages
Correct answer is B
The use of modern machines in production leads to an efficient and fast tracked production process with less human power required. This is one of the merits of technology in production and is used to maximize product quality and reduce production costs.
The use of machines in production leads to a decrease for the demand for labour.
To protect farmers during a bumper harvest, the government usually
Set a maximum price
Release products from the buffer stock
Sell the excess to consumers
Set a minimum price
Correct answer is D
During seasons where farmers experience a bumper harvest, the government protect the farmers by setting minimum prices that the produce can be exchanged for. This is done in order to avoid a situation where farmers end up exchanging their products for an amount less than the value of the product.
As the law of demand would have it, when the supply is higher than the demand, prices will fall. Hence the government set the minimum price at which the produce can be sold.