Q. A monopolist is able to maximize his profit when: A. His output is maximum B. He charges a high price C. His average cost is minimum D. His maginal revenue is equal to marginal cost Answer: His maginal revenue is equal to marginal cost
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Q. With which of the following is the concept of marginal cost closely related? A. Variable cost B. Fixed cost C. Implicit cost D. Explicit cost Answer: Variable cost
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Q. According to M. Kalecki, the true measure of the degree of monopoly power is the: A. Ratio between price and marginal cost B. Extent of monopolistic profit enjoyed by the monopolist C. Cross-elasticity of demand for the product of the monopolist D. Price charged by the monopoliist minus marginal cost of production Answer: Ratio
According to M. Kalecki, the true measure of the degree of monopoly power is the Read More »
Q. According to current thinking, the law of diminishing returns applies to: A. All fields of production B. Agriculture C. Mining D. Manufacturing Answer: All fields of production
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Q. The cost of one thing in terms of the alternative given up is known as: A. Production cost B. Physical cost C. Real cost D. Opportunity cost Answer: Opportunity cost
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Q. Elasticity of supply refers to the degree of responsiveness of supply of a commodity to changes in its: A. Demand B. Price C. Costs of production D. State of technology Answer: Price
Q. An increase in the supply of a commodity is caused by: A. Improvements in its technology B. Fall in the prices of other commodities C. Fall in the prices of factors of production D. All of the above Answer: All of the above
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Q. What is the shape of the average fixed cost (AFC) curve? A. U-shape B. Horizontal upto a point and then rising C. Sloping down towards the right D. Rectangular hyperbola Answer: Rectangular hyperbola
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Q. Which one of the following is also known as plant curves? A. Long-run average cost (LAC) curves B. Short-run average cost (SAC) curves C. Average variable cost (AVC) curves D. Average total cost (ATC) curves Answer: Short-run average cost (SAC) curves
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Q. Some economists refer to iso-product curves as: Engels curve Production indifference curve Budget line Ridge line Answer: Production indifference curve
