Multiple-choice questions #1

1. A business' ability to affect the price it charges is known as a} pricing power b} monopoly power c} oligopoly power d} market power e} none of the above 2.Entry and exit of new businesses is most difcult in a} oligopoly b} monopoly c} perfect competition d} monopolistic competition e} all of the above 3.lvchonaId's is an example of a} perfect competition b} oligopoly c} monopolistic competition d} monopoly e} none of the above 4.The short-run is dened as the time period in which a} at least one input is fixed b} the amount of labour is decided c} the amount of capital is decided d} at least one input is variable e} none of the above 5.The law of diminishing marginal retums state that eventually a} marginal cost falls b} average variable cost falls c} average product falls d} marginal product falls e} an of the above