The most important limitation on the partner as a form of business enterprise is the?
- A. implication for partners'liability
- B. legal limitation placed on the number of partners
- C. difficulties arising from having two co-ordinate heads of a firm
- D. fact that each partner regardless of the capital he contributes, must have the same voting rights
In a public company, enterpreneurial functions are performed by the?
- A. workers
- B. shareholders
- C. general manager
- D. board of directors
The additional revenue obtained by using one more unit of a factor is called?
- A. average product
- B. marginal product
- C. diminishing returns
- D. marginal revenue product
Price leadership is?
- A. a form of tacit collusion
- B. used to explain price rigidity
- C. illegal in nigeria
- D. a form of overt collusion
In the short run, the monopolistic competitors?
- A. always makes profit
- B. always incurs a loss
- C. always breaks -even
- D. may close down
Which of the following is TRUE at the quantity of output where Average Cost (AC) per unit has reached its minimum level?
- A. AVC=FC
- B. MC=AVC
- C. MC=AC
- D. AC=AFC
If prices fall in a perfectly competitive industry, the firms in that industry in the short run will?
- A. not decrease in number
- B. keep output at the same level but make losses
- C. reduce production
- D. intensity the advertisement of their products
Total revenue is always equal to?
- A. marginal revenue multiplied by the quantity sold
- B. average revenue plus marginal revenue
- C. marginal revenue multiplied by marginal cost
- D. average revenue multiplied by the quantity sold
One of the characteristics of an imperfect market is?
- A. a large number of buyers and sellers
- B. a lack of homogeneity of products
- C. an adequate awareness of market conditions by buyers and sellers
- D. the availability of substitutes
One factor which influences the slope of a non-linear demand curve for a commodity is the?
- A. price of the commodity
- B. quantity of the commodity demanded
- C. availability of substitutes
- D. available of complements
Which of the following changes in equilibrium price and quantity is as a result of an upward shift in the market demand for a commodity?
- A. Both the price and the quantity fall
- B. The price rise and the quantity falls
- C. The price falls and the quantity rises
- D. Both the price and the quantity rise
If goods were free, a rational consumer would consume?
- A. an infinite amount of each good
- B. the amount where marginal utility became zero
- C. the same amount as when each good had a price
- D. the amount where marginal utility was the highest
A commodity is said to have a derived demand when the commodity
- A. and another have joint demand
- B. is demanded because of what it can help to produce
- C. is demanded for different purposes
- D. has inelastic demand
The output at which total revenue equals total cost is known as?
- A. profit-maximizing output
- B. break even level output
- C. loss-minizing output
- D. least-cost output
Total fixed cost measures the cost of?
- A. all plant and machinery
- B. all assets where quantity cannot be varied in the short run
- C. all assets upon which the firm has control
- D. prooerty owned by the firm
The assumption of profit maximization implies profit?
- A. is the most important consideration of the firm
- B. is the sole consideration of the firm
- C. assumes an insatiable propotion in the instinct of management
- D. is made in other to break-even
The law of Diminishing Returns begins to operate when?
- A. total product begins to rise
- B. total product begins to fall
- C. marginal product begins to fall
- D. marginal product begins to rise
Which of the following BEST describes the production function?
- A. it indicates best output to produce
- B. it relates naira inputs to naira output
- C. it relates physical outputs to physical inputs
- D. it indicates the best way to combine factors to produce given output
Development outside a given firm which reduce the firm costs are called?
- A. internal economies
- B. external economies
- C. external diseconomies
- D. optimum effects
The average product of labour in a given period is obtained by dividing the?
- A. number of workers by the total product
- B. total product by the number of hours actually worked
- C. change in total product by the change in the number of workers
- D. total product by the number of workers
Air is essential to life but commands no price!
Diamond is not essential to life but commands a high?
- A. thrift
- B. value
- C. abundance
- D. scarcity