Q. Which of the following is not a feature of iso-product curves? Iso-product curves: A. Are downward sloping to the right B. Show different input combination producing the same output C. Intersect each other D. Are convex to the origin Answer: Intersect each other
Which of the following is not a feature of iso-product curves? Iso-product curves Read More »
Q. The horizontal demand curve parallel to x-axis implies that the elasticity of demand is: Zero Infinite Equal to one Greater than zero but less than infinity Answer: Infinite
The horizontal demand curve parallel to x-axis implies that the elasticity of demand is Read More »
Q. The production techniques are technically efficient: A. Below the lower ridge line B. Above the upper ridge line C. Between the two ridge lines D. On the upper ridge line Answer: Between the two ridge lines
The production techniques are technically efficient Read More »
Q. A significant property of the Cobb – Douglas production function is that the elasticity of substitution between inputs is: A. Equal to unity B. More than unity C. Less than unity D. Zero Answer: Equal to unity
Q. In the short term, when the output of a firm increases, its average fixed cost: A. Increase B. Decrease C. Remains constant D. First declines and then rises Answer: Decrease
In the short term, when the output of a firm increases, its average fixed cost Read More »
Q. Total costs in the short-term are classified into fixed costs and varibale costs. Which one of the following is a variable cost? A. Cost of raw materials B. Cost of equipment C. Interest payment on past borrowing D. Payment of rent on buildings Answer: Cost of raw materials
Q. Which of the following cost curves is never Un-shaped? A. Average cost curve B. Marginal cost curve C. Average variable cost curve D. Average fixed cost curve Answer: Average fixed cost curve
Which of the following cost curves is never Un-shaped? Read More »
Q. Which cost increases continuously with the increase in production? A. Average cost B. Marginal cost C. Fixed cost D. Variable cost Answer: Variable cost
Which cost increases continuously with the increase in production? Read More »
Q. The supply of a commodity refers to: A. Actual production of the commodity B. Total existing stock of the commodity C. Stock available for sale D. Amount of the commodity offered for sale at a particular price per unit of time Answer: Amount of the commodity offered for sale at a particular price per
Q. A vertical supply curve parallel to the price axis implies that the elasticity of supply is: A. Zero B. Indinity C. Equal to one D. Greater than zero but less than infinity Answer: Zero
