The market demand for a good has a price elasticity of demand of 0.4. Which of the following statements is correct?
All of the following statements about a firms total revenue curve are true except which ONE?
Which of the following can be efficiently allocated between competing uses by the price mechanism?
A rise in the demand for petrol by motorists is likely to follow a rise in the price of:
Which of the following are examples of long run internal economies of scale?
i. Mass production using robot machine tool technology
ii. Obtaining lower prices when buying raw materials in bulk
iii. Long run technical change in the industry
iv. The emergence of specialized training institutions for the industry
v. Lower borrowing costs for large firms
vi. The spreading of fixed costs over a larger output
Country X is a country highly reliant on its oil exports. However, in recent months, oil prices have fallen by 20%. It is located near Country Y, an oil exporter which is a member of a trading bloc. Country X has some coal reserves, but faces stiff competition from Country Z, a member of the trading bloc, which also exports coal.
Which of the following would be the most effective way for the government to alleviate these circumstances?
Select ALL that apply.
