A. managers need to be paid enough to stop them leaving the company
B. objectives such as profit are not maximized
C. short-run profits are maximized
D. long-run profits are maximized
Related Mcqs:
- Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ?
A. marginal revenue and then use the demand curve to determine the price consistent with this quantity
B. average total cost and then use the supply curve to determine the price consistent with this quantity
C. marginal revenue and then use the supply curve to determine the price consistent with this quantity
D. average total cost and then use the demand curve to determine the price consistent with this quantity - Which of the following is true with regard to monopolistically competitive firms scale of production and pricing decisions Monopolistically competitive firms produce ?
A. at the efficient scale and charge a price equal to marginal cost
B. at the efficient scale and charge a price above marginal cost
C. With excess capacity and charge a price above marginal cost
D. With excess capacity and charge a price equal to marginal cost - When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
A. less than the efficient level of output
B. more than the efficient level of output
C. so that consumer surplus is zero
D. the efficient level of output - In monopolistic competition of firms are making abnormal profit other firms will enter and ?
A. The marginal cost will shift outwards
B. the demand curve will shift inwards
C. The average cost will shift downwards
D. The average variable cost will increase - Fear to take-overs will lead firms to maximize ?
A. growth.
B. sales revenue
C. managers utility
D. profits. - Galbraith’s idea that firms are controlled by a technostructure supports _________ theories?
A. Williamson’s
B. classical economic
C. Marxist
D. monetarist - Firms that engage in satisficing behavior are likely to be ?
A. Like other firms in their industry.
B. growth maximisers.
C. leading firms in their industry
D. unlike other firms in their industry - The merger of two clothing firms would be a ____ merger?
A. horizontal
B. vertical
C. homogeneous
D. conglomerate - According to William Baumol under oligopolistic competition among large, high tech business firms. innovation has ?
A. created stationary economies of scale
B. maintained the relationship between firms and their clients
C. replaced price as the important
D. limited the expansion of firms - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
A. downward sloping
B. perfectly inelastic
C. upward sloping
D. perfectly elastic
