Tag: shifts in demand and supply

Questions Related to shifts in demand and supply

In the long run, there is enough time for the Firm to cover its Losses and earn Normal Profits. This is because in the long run, all inputs are-

economics producer's equilibrium equilibrium of a firm shifts in demand and supply liquidity preference and profit

  1. Identical

  2. Homogeneous

  3. Variable

  4. Fixed

Show answer
Correct Option: C

Time element was conceived by _________.

economics producer's equilibrium equilibrium of a firm shifts in demand and supply liquidity preference and profit

  1. Adam Smith

  2. Alfred Marshall

  3. Pigou

  4. Lionel Robinson

Show answer
Correct Option: B
Explanation:

Time element was propounded by Alfred Marshall with respect to price discrimination. He said that demand and supply and the price all these factors should be managed by the seller perfectly on time to earn huge profits. Hence, time element was conceived by Alfred Marshall.

If the firm increases its output even after $MR = MC$ and an equilibrium is struck, then:
economics producer's equilibrium equilibrium of a firm shifts in demand and supply liquidity preference and profit

  1. $MR$ becomes greater than $MC$

  2. $MC$ becomes greater than $MR$

  3. $MR$ stays equal to $MC$

  4. none of these

Show answer
Correct Option: B