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CCEA A-Level Economics A2 1 Business Economics overview quiz quiz

15questions. Pick an answer and you'll see why right away.

  1. In the short run, a fixed cost is best described as a cost that:

  2. The law of diminishing marginal returns applies:

  3. Which of the following is an example of a purchasing economy of scale?

  4. A firm maximises profit at the output where:

  5. A brewery buying a chain of pubs is an example of:

  6. Which objective involves a firm aiming for a satisfactory rather than maximum outcome to balance stakeholders?

  7. In perfect competition, a firm's demand curve is:

  8. Why can a monopoly sustain supernormal profit in the long run?

  9. Compared with perfect competition, a monopoly facing the same costs will:

  10. Firms in monopolistic competition earn only normal profit in the long run because:

  11. The defining feature of an oligopoly is:

  12. In the prisoner's dilemma applied to a cartel, both firms tend to:

  13. Which is a necessary condition for successful price discrimination?

  14. The demand for labour is described as a derived demand because labour is:

  15. A trade union raising wages against a monopsony employer can: