If more than one person wants the same unit of a good, it is scarce.
The 2010 HKCEE Economics examination consisted of two papers:
When tackling this question in an exam environment, use this systematic approach to eliminate incorrect options: hkcee 2010 econ paper 2 q2
The firm must accept the equilibrium market price (
To make the article useful, I can discuss the types of questions that were common in HKCEE Economics Paper 2, such as those on market structures, demand and supply, or production costs. I will also include a hypothetical example and answer. If more than one person wants the same
The correct answer for is C . Question Summary
A competitive firm can make supernormal profits or losses in the short run, but moves to normal profit in the long run. A monopoly can sustain supernormal profits in both. Why This Question Matters for DSE Economics The correct answer for is C
The question typically asks about a foundational concept such as or the nature of economic goods , which were staple topics for the second question in Paper 2 (Multiple Choice) during that era.
Because the demand curve is perfectly elastic (horizontal), selling an extra unit does not require lowering the price. Therefore, . The profit-maximization condition becomes