A producer sustains a loss in the short run if
Marfinal revenue is less than price
Price is less than average cost
Average variable cost is less than average cost
Marginal cost is less than marginal revenue
Correct answer is B
No explanation has been provided for this answer.
One disadvantage of sole proprietorship is its
limited liability
High profits
High sense of ownership
Low credit rating
Low failure rate
Correct answer is D
No explanation has been provided for this answer.
One major difference between monopoly and perfect competition is that
The perfect competitor is a price taker while the monopolist determines his own output
Homogeneity of purpose exists for the perfect competitor while non-homogeneity of purpose exist for the monopolist
Sellers are located all over the world in the perfect competition but sellers are only in one country in the case of the monopolist
There is free entry and exist in perfect competition but no free exist in monopoly
Correct answer is A
No explanation has been provided for this answer.
Pricing and output decisions of sellers are highly interdependent in markets known as
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
Imperfect competititon
Correct answer is A
No explanation has been provided for this answer.
Which of the following is an important function of prices in a market economy?
Ensuring that resources are used in the most efficient manner
Ensuring an equitable distribution of goods and services
Ensuring that all industries are perfectly competitive in the long run
Equating level of purchases with level of needs
Correct answer is D
No explanation has been provided for this answer.