Classical

Business Economics - Business Economics MCQ

36:  

Average revenue is calculated by

A.

TRn - TRn-1

B.

P x Q

C.

TR / MR

D.

TR / Q

 
 

Option: D

Explanation :

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37:  
Cross elasticity of demand between two perfect substitutes will be
A.

low

B.

high

C.

zero

D.

infinity

 
 

Option: D

Explanation :

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38:  
At elasticity of one, marginal revenue is equal to
A.

one

B.

zero

C.

infinity

D.

none

 
 

Option: B

Explanation :
If elasticity of demand is equal to one or E = 1, in that case MR = 0.
If E > 1, in that case MR will be positive.

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39:  

Shifts in demand curve include

A.

Increase in Demand (Upward shift)

B.

Extention in demand

C.

Contraction in demand

D.

None of the above

 
 

Option: A

Explanation :

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40:  

An indifference curve is always

A.

A vertical straight line

B.

Convex to the origin

C.

Concave to the origin

D.

A horizontal straight line

 
 

Option: B

Explanation :

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