Free Microeconomics MCQs with Answers
1,742 Microeconomics MCQs from Economics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Last updated
1,742 questions · page 88 of 88
- A. A temporary fall in consumer income
- B. A government-granted patent
- C. A rise in the firm's variable cost
- D. A change in the market equilibrium price
Explanation: A patent gives its holder exclusive legal rights to use or sell an invention for a specified period.
Correct answer: A government-granted patent1742. A firm has economies of scope when it can produce two products jointly at a total cost that is:
- A. Higher than producing them separately
- B. Equal to the cost of producing either product
- C. Lower than producing them separately
- D. Unaffected by the number of products
Explanation: Economies of scope occur when joint production is cheaper than separate production of the same quantities.
Correct answer: Lower than producing them separately