Correct Answer: C) It will break even

Explanation

This Economics question is asking about what happens to an oligopolist (a market structure where a few large firms dominate the market) if they incur losses in the short run. The question wants to know what happens in the long run. There are four options given, but only one of them is correct.

If an oligopolist incurs losses in the short run, they may consider leaving the market and shutting down their business. However, this is not always the case. In the long run, the oligopolist may choose to continue operating in the market, despite the losses incurred in the short run. This is because they may have a long-term strategy to maintain their market share or to keep competitors out of the market.

Option A states that the oligopolist will stay in business. This could be true, but it is not always the case. The oligopolist may choose to leave the market if the losses are too great.

Option B suggests that the oligopolist will go out of business. This could be true, but it is not always the case. The oligopolist may choose to stay in business even if they incur losses in the short run.

Option C is the correct option. It suggests that the oligopolist will break even in the long run. This means that the oligopolist will eventually make enough profit to cover the losses incurred in the short run.

Option D suggests that the oligopolist will merge with other firms. This could happen, but it is not always the case. The oligopolist may choose to stay in business and try to improve its market position on its own.

In conclusion, if an oligopolist incurs losses in the short run, they may choose to continue operating in the market in the long run. The correct option is that they will break even. However, this is not always the case, and the oligopolist may choose to leave the market or merge with other firms.

Explanation

(a)(i) The excess demand for maize will be 14,000kg - 6,000kg = 8,000kg,

i.e., Quantity demanded - Quantity supplied= Excess Demand.

(ii) Since there is excess demand of 8,000kg, competition among buyers will force up the price to the equilibrium price of $2.00.

(b) To maintain the fixed price of $ 3.00. per thousand kilogram, the government must buy up the excess supply of 13,000kg.

(c) The effects on the quantities demanded and supplied are that producers will reduce supply from the equilibrium quantity of 9,000 kg to 3,000kg. Also there will be excess demand of 16,000 kg.

Correct Answer: A. an increase in equilibrium price and a decrease in equilibrium quantity

Correct Answer: D. external economies of scale

Correct Answer: B. a country's economic growth

Explanation

National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time. This is otherwise considered as measuring the economic growth.

Correct Answer: D. expand their operations

Explanation

Free entry and exit are economic terms used to describe the condition of a free market economic Free entry is a condition in which sellers can freely enter the market with its product to make sales. Free exit occurs when a firm can leave the market without limit when economic losses are being incurred. Firms tend to expand in their operations as they grow, the concept of free entry and exit avails them the opportunity of entering and leaving a market at will.

Correct Answer: B. marginal utility

Correct Answer: B. maximize profits

Explanation

The main objective of every firm in business is to maximize profits while minimizing cost.

Correct Answer: C) negatively sloped

Explanation

The question is asking about the demand curve that a pure monopolist faces. A pure monopolist is a single seller in the market, without any close substitutes. The demand curve shows the relationship between the price of a product and the quantity demanded of that product. The question is asking about the shape of the demand curve that the pure monopolist faces.

Option A states that the demand curve facing the pure monopolist is perfectly price elastic. This means that an increase in price will cause a decrease in quantity demanded to the point where the increase in revenue from selling at a higher price is exactly offset by the decrease in revenue from selling fewer units. This option is incorrect for a pure monopolist because a monopolist has the power to set its own price and the demand for its product is not perfectly elastic.

Option B states that the demand curve facing the pure monopolist is perfectly price inelastic. This means that the quantity demanded is not affected by changes in price. This option is incorrect because a monopolist has some power to set the price but the demand for its product is not completely insensitive to price changes.

Option C is the correct answer. It states that the demand curve facing the pure monopolist is negatively sloped. This means that as the price of the product increases, the quantity demanded decreases. A monopolist has some power to set the price, but it must balance the desire to sell more units at a lower price with the desire to sell fewer units at a higher price.

Option D states that the demand curve facing the pure monopolist is positively sloped. This means that as the price of the product increases, the quantity demanded also increases. This option is incorrect because a monopolist cannot increase the quantity demanded by raising the price.

In summary, the correct option is option C, which states that the demand curve facing the pure monopolist is negatively sloped. This means that as the price of the product increases, the quantity demanded decreases. A monopolist has some power to set the price, but it must balance the desire to sell more units at a lower price with the desire to sell fewer units at a higher price.

Explanation

Possible solutions to the problems of rural-urban migration in West African countries are :

(i) Provision of social amenities such as water, electricity, cinemas, roads and telephones in rural areas

(ii) Transformation of traditional agriculture to modern agriculture

(iii) Establishment of industries, projects and business that will absorb the rural working population and reverse labour movement

(iv) Establishment of colleges and other institutions of higher learning in rural areas

(v) Encouragement of government departments, business firms and financial institutions to open branches in rural areas.

(vi) Provision of recreational facilities— If recreational facilities like stadia, swimming pools, cinema houses, amusement parks etc are made available in rural areas, this will reduce the propensity of our youths to move to urban areas.