Microeconomics A-Level QuestionsWatch
1. Which of the following market structures is most likely to see no advertising?
2. Under which of the following market structures does Network Rail operate?
3. Which of the following characteristics is a feature of a perfectly competitive market?
A.There are no barriers to entry
B.Firms produce a highly differentiated product
C.Consumers do not have perfect information of the market
D.Firms are price setters
E.The marginal revenue curve is downward-sloping
4. A perfectly competitive firm is producing 1,000 units of output per week at a TFC of £1,000, a TVC of £1,200 and an MC of £1.00. If the market price is £1.50, what should the firm do?
A.Cease production altogether
D.Raise its price
E.Maintain output at its present level
5. Which one of the following would not be a barrier to firms entering an industry?
A.Patents on key processes
B.Substantial economies of scale
C.Large initial capital costs
D.An upward-sloping long-run average cost curve
E.The threat of takeover by the existing firm(s)
1C, 2B, 3A, 4B, 5D
I'd really recommend you understand why though, so ask if there's one you can't see why.