Jamb Economics Past Questions For Year 2006
Question 36
Product differentiation in monopolistic competition implies that
- A. different buyers pay different prices for the same product
- B. different products are sold to the same buyer
- C. sellers determine whom to sell their products to
- D. the same product is available in different forms
Question 37
A perfectly competitive firm is advised to close down when the
- A. price is below the marginal cost
- B. price is equal to the marginal revenue
- C. marginal revenue is equal to the marginal cost
- D. price is below the average variable cost
Question 38
If the short-run cost curve of a firm is U-shaped, the marginal and average cost are equal where the
- A. average variable cost is minimum
- B. marginal cost is falling
- C. average cost is minimum
- D. average fixed cost is falling
Question 39
The market structure in which there is interdependence of price-output policies is
- A. a pure monopoly
- B. an oligopoly
- C. a pure competition
- D. a monopolistic competition
Question 40
The only factor of production that plays an active role in the production process is
- A. land
- B. capital
- C. entrepreneur
- D. labour
