Why the short run average cost curve of a firm might be you shaped and explain the link between the short run average cost curve and long run average cost curve of a firm?

Why the short run average cost curve of a firm might be you shaped and explain the link between the short run average cost curve and long run average cost curve of a firm?
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Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve

Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve

Last Answer : (2) long-run average cost curve Explanation: Under perfect competition, the firms operate at the minimum point of long-run average cost curve. In this way, the actual longrun output of ... ideal output. This gives the mea-sure of excess capacity which lies unutilized under imperfect competition.

Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve

Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve

Last Answer : long-run average cost curve

In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Description : In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Last Answer : ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

A firm should cease production in the short(a) Price is less than average fixed cost (b) Price is less than average cost (c) Profits are negative (d) Price is less than average variable cost run if

Description : A firm should cease production in the short run if(a) Price is less than average fixed cost (b) Price is less than average cost (c) Profits are negative (d) Price is less than average variable cost

Last Answer : (d) Price is less than average variable cost

In the short run if the price is above the average total cost in a monopolistic competitive market, the firm makes (a) Profits and new firms join the market ; (b) Profit and bar entry to new firms; (c) Makes losses and exit the market ; (d) Quick profit and disappears

Description : In the short run if the price is above the average total cost in a monopolistic competitive market, the firm makes (a) Profits and new firms join the market ; (b) Profit and bar entry to new firms; (c) Makes losses and exit the market ; (d) Quick profit and disappears

Last Answer : (a) Profits and new firms join the market ;

The negatively sloped part of long run cost curve of a firm is due to (a) Increase in production due to specialization and division of labour; (b) Diseconomies of scale ; (c) Diminishing returns to scale ; (d) Marginal utility theory

Description : The negatively sloped part of long run cost curve of a firm is due to (a) Increase in production due to specialization and division of labour; (b) Diseconomies of scale ; (c) Diminishing returns to scale ; (d) Marginal utility theory

Last Answer : (a) Increase in production due to specialization and division of labour;

The positively sloped part of long run cost curve of a firm is due to (a) Economies of scale ; (b) Diseconomies of scale; (c) Diminishing returns to scale ; (d) Marginal utility theory

Description : The positively sloped part of long run cost curve of a firm is due to (a) Economies of scale ; (b) Diseconomies of scale; (c) Diminishing returns to scale ; (d) Marginal utility theory

Last Answer : (b) Diseconomies of scale;

Demand curve of a firm under perfect competition is : (1) horizontal to ox-axis (2) negatively sloped (3) positively sloped (4) U - shaped

Description : Demand curve of a firm under perfect competition is : (1) horizontal to ox-axis (2) negatively sloped (3) positively sloped (4) U - shaped

Last Answer : (1) horizontal to ox-axis Explanation: Under Perfect Competition, the firm faces a horizontal demand curve. It can sell any quantity desired at the market price, but cannot sell anything above the market price.

Demand curve of an Oligopoly firm is characterized by (a) Horizontal to X axis ; (b) Kink at the price ; (c) U shaped curve ; (d) A liner line

Description : Demand curve of an Oligopoly firm is characterized by (a) Horizontal to X axis ; (b) Kink at the price ; (c) U shaped curve ; (d) A liner line

Last Answer : (b) Kink at the price ;

Demand curve of a firm under perfect competition is : (1) horizontal to ox-axis (2) negatively sloped (3) positively sloped (4) U – shaped

Description : Demand curve of a firm under perfect competition is : (1) horizontal to ox-axis (2) negatively sloped (3) positively sloped (4) U – shaped

Last Answer : horizontal to ox-axis

Which of the following cost curve is never `U' shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve

Description : Which of the following cost curve is never `U' shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve

Last Answer : (3) Average fixed cost curve Explanation: Average fixed cost curve is never 'U' shaped. Since total fixed costs are unchanged as output rises, the average fixed cost curve falls continuously as output is increased.

Which of the following is an inverted `U' shaped curve? (1) Average cost (2) Marginal cost (3) Total cost (4) Fixed cost

Description : Which of the following is an inverted `U' shaped curve? (1) Average cost (2) Marginal cost (3) Total cost (4) Fixed cost

Last Answer : (1) Average cost Explanation: In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. Both the Short-run average total cost curve (SRAC) and Long ... typically expressed as U-shaped. However, the shapes of the curves are not due to the same factors.

Average Fixed Cost Curve is - (1) Upward sloping (2) `U' shaped (3) 'V' shaped (4) Downward sloping

Description : Average Fixed Cost Curve is - (1) Upward sloping (2) `U' shaped (3) 'V' shaped (4) Downward sloping

Last Answer : (4) Downward sloping Explanation: The Average Fixed Cost Curve graphically represents the relation between average fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced. It is relatively high at small quantities of output.

Average Fixed Cost Curve is (1) Upward sloping (2) ‘U’ shaped (3) ‘V’ shaped (4) Downward sloping

Description : Average Fixed Cost Curve is (1) Upward sloping (2) ‘U’ shaped (3) ‘V’ shaped (4) Downward sloping

Last Answer : Downward sloping 

Which of the following cost curve is never ‘U’ shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve

Description : Which of the following cost curve is never ‘U’ shaped ? (1) Marginal cost curve (2) Average variable cost curve (3) Average fixed cost curve (4) Average cost curve

Last Answer : Average fixed cost curve

Which of the following is an inverted ‘U’ shaped curve ? (1) Average cost (2) Marginal cost (3) Total cost (4) Fixed cost

Description : Which of the following is an inverted ‘U’ shaped curve ? (1) Average cost (2) Marginal cost (3) Total cost (4) Fixed cost

Last Answer : Average cost

For a monopoly firm market demand curve is (a) Marginal revenue curve itself ; (b) Average Revenue curve itself ; (c) Marginal cost curve (d) None

Description : For a monopoly firm market demand curve is (a) Marginal revenue curve itself ; (b) Average Revenue curve itself ; (c) Marginal cost curve (d) None

Last Answer :  (b) Average Revenue curve itself ;

Long run supply curve of a constant cost industry is (a) Horizontal line at a price that is equal to the long run minimum average cost of production; (b) Horizontal line overlapping X axis ; (c) Vertical line at mid of X axis ; (d) Vertical line overlapping Y axis

Description : Long run supply curve of a constant cost industry is (a) Horizontal line at a price that is equal to the long run minimum average cost of production; (b) Horizontal line overlapping X axis ; (c) Vertical line at mid of X axis ; (d) Vertical line overlapping Y axis 

Last Answer : (a) Horizontal line at a price that is equal to the long run minimum average cost of production; 

In short run, if a competitive firm incurs losses, it will - (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.

Description : In short run, if a competitive firm incurs losses, it will - (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.

Last Answer : (1) stop production. Explanation: In the short run, a firm that is operating at a loss (where the revenue is less that the total cost or the price is less than the unit cost) must ... will shutdown if the sale of the goods or services produced cannot even cover the variable costs of production.

In short run, if a competitive firm incurs losses, it will (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.

Description : In short run, if a competitive firm incurs losses, it will (1) stop production. (2) continue to produce as long as it can cover its variable costs. (3) raise price of its product. (4) go far advertising campaign.

Last Answer : stop production.

In the long run a firm in perfect competition earns (a) Normal profit only ; (b) Abnormal profit ; (c) Average profit of past five years; (d) 12.33% profit on capital employed

Description : In the long run a firm in perfect competition earns (a) Normal profit only ; (b) Abnormal profit ; (c) Average profit of past five years; (d) 12.33% profit on capital employed

Last Answer : (a) Normal profit only ;

Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others

Description : Liquidity ratios measure the --------- solvency of a firm a) Long term b) Short term c) Average d) Others

Last Answer : b) Short term

A natural monopoly has declining – over large range of output (a) Long run average cost ; (b) Short run average cost ; (c) Long run total cost; (d) Long run marginal cost

Description : A natural monopoly has declining – over large range of output (a) Long run average cost ; (b) Short run average cost ; (c) Long run total cost; (d) Long run marginal cost

Last Answer : (a) Long run average cost ;

In the short run an oligopolistic firm will (a) Make profits ; (b) Incur losses ; (c) Just break even ; (d) Any of these three are possible

Description : In the short run an oligopolistic firm will (a) Make profits ; (b) Incur losses ; (c) Just break even ; (d) Any of these three are possible

Last Answer : (d) Any of these three are possible

Firm that operate internationally are able to A. earn a greater return from their skills and core competencies B. realize location economies where they can be performed most efficiently C. realize greater experience curve economies, which reduces the cost of production D. All the above

Description : Firm that operate internationally are able to A. earn a greater return from their skills and core competencies B. realize location economies where they can be performed most efficiently C. realize greater experience curve economies, which reduces the cost of production D. All the above

Last Answer : All the above

The ideal level of operation for a pure monopoly firm is the level where (a) TR and STC curve are parallel to each other ; (b) TR = TC ; (c) TR = Total variable cost; (d) TR is less than STC

Description : The ideal level of operation for a pure monopoly firm is the level where (a) TR and STC curve are parallel to each other ; (b) TR = TC ; (c) TR = Total variable cost; (d) TR is less than STC 

Last Answer : (a) TR and STC curve are parallel to each other ; 

In the case of monopolistic competition A.MR curve cannot be defined B.AR curve cannot be defined C.The short run supply curve cannot be defined D.None of the above

Description : In the case of monopolistic competition A.MR curve cannot be defined B.AR curve cannot be defined C.The short run supply curve cannot be defined D.None of the above

Last Answer : C.The short run supply curve cannot be defined

In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to (a) Price discrimination;(b)Cost effectiveness ; (c) Banned entry of new firms ; (d) Sales promotion

Description : In a pure monopoly firm a firm can make abnormal profit at the long run equilibrium level due to (a) Price discrimination;(b)Cost effectiveness ; (c) Banned entry of new firms ; (d) Sales promotion

Last Answer : (c) Banned entry of new firms ;

Long run supply curve of a decreasing cost industry is (a) Downward sloping curve ; (b) Upward sloping curve; (c) Straight line parallel to X axis ; (d) Straight line parallel to y axis

Description : Long run supply curve of a decreasing cost industry is (a) Downward sloping curve ; (b) Upward sloping curve; (c) Straight line parallel to X axis ; (d) Straight line parallel to y axis

Last Answer : (a) Downward sloping curve ;

Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line

Description : Long run supply curve of a increasing cost industry is (a) Horizontal line overlapping X axis ; (b) Upward sloping line; (c) Downward sloping line ; (d) Vertical line 

Last Answer : (b) Upward sloping line; 

Which statement is not related to S-shaped population curve?

Description : Which statement is not related to S-shaped population curve?

Last Answer : Which statement is not related to S-shaped population curve? A. Environmental resistance suddenly becomes effective. ... occurs. D. Both (1) and (3).

Which of the following statements is not true for J-shaped growth curve?

Description : Which of the following statements is not true for J-shaped growth curve?

Last Answer : Which of the following statements is not true for J-shaped growth curve? A. Exponential ... crash occurs. D. Population seldom reaches equilibrium.

What would An s shaped population growth curve best describes what?

Description : What would An s shaped population growth curve best describes what?

Last Answer : What is the answer ?

If you were to plot the height of everyone in your class on graph the values would probable form a hill-shaped curve called?

Description : If you were to plot the height of everyone in your class on graph the values would probable form a hill-shaped curve called?

Last Answer : logistic model

The probability of completing the project can be estimated based upon the ____ . (A) Uniform distribution curve (B) Normal distribution curve. (C) U-shaped distribution curve (D) None of the above

Description : The probability of completing the project can be estimated based upon the ____ . (A) Uniform distribution curve (B) Normal distribution curve. (C) U-shaped distribution curve (D) None of the above

Last Answer : (B) Normal distribution curve.

The probability of completing the project can be estimated based upon the . (A)Uniform distribution curve (B)Normal distribution curve. (C)U-shaped distribution curve (D)None of the above

Description : The probability of completing the project can be estimated based  upon the . (A)Uniform distribution curve (B)Normal distribution curve. (C)U-shaped distribution curve (D)None of the above

Last Answer : (B)Normal distribution curve.

f the mean and the median pertaining to a certain character of a population are of the same value, the following is most likely to occur (a) a bi-modal distribution (b) a T-shaped curve (c) a skewed curve (d) a normal distribution.

Description : f the mean and the median pertaining to a certain character of a population are of the same value, the following is most likely to occur (a) a bi-modal distribution (b) a T-shaped curve (c) a skewed curve (d) a normal distribution.

Last Answer : (d) a normal distribution.

The population of an insect species shows an explosive increase in numbers during rainy season followed by its disappearance at the end of the season. What does this show? (a) The food plants mature and die at the end of the rainy season. (b) Its population growth curve is of J-type. (c) The population of its predators increases enormously. (d) S-shaped or sigmoid growth of this insect.

Description : The population of an insect species shows an explosive increase in numbers during rainy season followed by its disappearance at the end of the season. What does this show? (a) The food plants ... The population of its predators increases enormously. (d) S-shaped or sigmoid growth of this insect.

Last Answer : (b) Its population growth curve is of J-type.

Typical growth curve in plants is (a) stair-steps shaped (b) parabolic (c) sigmoid (d) linear.

Description : Typical growth curve in plants is (a) stair-steps shaped (b) parabolic (c) sigmoid (d) linear.

Last Answer : (c) sigmoid

The population growth curve is (A) S-shaped curve (B) Parabolic curve (C) Circular curve (D) Straight line

Description : The population growth curve is  (A) S-shaped curve  (B) Parabolic curve  (C) Circular curve  (D) Straight line 

Last Answer : (A) S-shaped curve

With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted C -shaped demand curve

Description : With what type of products would you expect demand to increase as price falls? A)Prestige products B)Products with elastic demand C)Products with inelastic demand D)Products with an inverted shaped demand curve

Last Answer : D)Products with elastic demand

Which one of the following products is most likely to have an inverted C -shaped demand curve? A)Wrangler jeans B)Georgio perfume C)Maxwell House coffee D)St Michael ********* cake E)Ford Sierra

Description : Which one of the following products is most likely to have an inverted C -shaped demand curve? A)Wrangler jeans B)Georgio perfume C)Maxwell House coffee D)St Michael christmas cake E)Ford Sierra

Last Answer : B)Georgio perfume

.All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve

Description : .All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve

Last Answer : (a) AFC curve

A perfectly elastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis; (c) U shaped ; (d) Downward sloping

Description : A perfectly elastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis; (c) U shaped ; (d) Downward sloping

Last Answer : the aggregate demand curve

A perfect inelastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis ; (c) U shaped; (d) Downward sloping

Description : A perfect inelastic supply curve will be (a) Parallel to Y axis or a vertical line ; (b) Parallel to X axis ; (c) U shaped; (d) Downward sloping

Last Answer : (a) Parallel to Y axis or a vertical line ;

Which of the following cannot be U shaped curve (a) AFC curve ; (b) AC curve ; (c) AVC curve ; (d) AMC curve

Description : Which of the following cannot be U shaped curve (a) AFC curve ; (b) AC curve ; (c) AVC curve ; (d) AMC curve

Last Answer : (a) AFC curve ;

What might happen to aggregate supply curve if there was a significant increase in the cost of foreign oil?

Description : What might happen to aggregate supply curve if there was a significant increase in the cost of foreign oil?

Last Answer : The aggregate supply curve shifts to the left as the price of key inputs rises, making a combination of lower output, higher unemployment, and higher inflation possible. When an economy experiences stagnant growth and high inflation at the same time it is referred to as stagflation.

Two infinitely long conductors carrying equal currents are shaped as shown. The short sectins are all of equal lengths. The point P is located symmetr

Description : Two infinitely long conductors carrying equal currents are shaped as shown. The short sectins are all of equal lengths. The point P is located symmetr

Last Answer : Two infinitely long conductors carrying equal currents are shaped as shown. The short sectins are all of equal lengths. ... zero B. B C. D. `sqrt(2)B`

How might douglass childhood experiences have shaped his political beliefs?

Description : How might douglass childhood experiences have shaped his political beliefs?

Last Answer : Douglass's childhood experience as a slave probably fostered a rebellious spirit and a desire for freedom that fueled his later fight for social and political equality. His exposure to and appreciation of education may also have contributed to this commitment to social equality for blacks.

Inwhich market structure is the demand curve of the market represented by the demand curve of the firm? (1) Monopoly (2) Oligopoly (3) Duopoly (4) Perfect Competition

Description : Inwhich market structure is the demand curve of the market represented by the demand curve of the firm? (1) Monopoly (2) Oligopoly (3) Duopoly (4) Perfect Competition

Last Answer : (1) Monopoly Explanation: Because the monopolist is the market's only supplier, the demand curve the monopolist faces is the market demand curve. The market demand curve is downward sloping, ... expect to receive for its output will not remain constant as the monopolist increases its output.