KASNEB CPA Foundation Level (Kenya) · Economics
Production, costs and market structures
10 practice questions, each with the answer and an explanation.
Practise Production, costs and market structures now
Random questions from this topic, one at a time. You see the answer and the explanation straight after each one.
All 10 questions
- The law of diminishing returns states that, in the short run, adding more of a variable factor to a fixed factor eventually leads to
- Which of the following is a fixed cost of a maize mill?
- A firm's total cost for 10 units is KSh 5,000 and for 11 units is KSh 5,350. What is the marginal cost of the 11th unit?
- A firm produces 200 units at a total cost of KSh 60,000, of which fixed cost is KSh 20,000. What is the average variable cost?
- A market with a single seller and high barriers to entry is called
- Which of the following is a feature of perfect competition?
- A firm in perfect competition maximises profit by producing where
- The kinked demand curve model is used to explain the behaviour of firms in
- Which of the following is a barrier to entry?
- Economies of scale occur when
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