Classical

Business Economics - Business Economics Questions

46:  
A market situation in which there are only few sellers & each seller can influence its price-output policy is called
A.

Oligopoly

B.

Monopoly

C.

Monopolistic

D.

Duopoly

 
 

Option: A

Explanation :


47:  

Assertion (A). In oligopoly price and output are generally indeterminate

Reason (R). The above situation occurs due to interdependence of the firms under oligopoly

A.

Both (A) and (R) are false

B.

(A) is true and (R) is false

C.

(A) is true and (R) is correct explanation of (A)

D.

(A) is true and (R) is not correct explanation of (A)

 
 

Option: C

Explanation :


48:  
Consumer reaches a saturation point for a product when MU is
A.

Positive

B.

Negative

C.

Zero

D.

None of these

 
 

Option: C

Explanation :


49:  

Assertion (A). A ship with heavy fuel is stable equilibrium and egg lying on its side is a natural equilibrium and egg posted on one of its end is unstable equilibrium.

Reason (R). Stable equilibrium is that in which economic condition after some change come back in the original state.

A.

(A) is true and (R) is correct explanation of (A)

B.

(A) is true and (R) is not a correct explanation of (A)

C.

(A) is false and (R) is true.

D.

(A) is true and (R) is false.

 
 

Option: A

Explanation :


50:  

Assertion (A). Marginal cost and differential cost do not convey the same meaning in all the circumstances. 

Reason (R). Differential cost increase or decrease due to change in fixed cost.

A.

(A) is true but (R) is false

B.

(A) is false, but (R) is true.

C.

(A) and (R) are correct and (R) is correct explanation of (A)

D.

Both (A) and (R) are correct, but (R) is not the correct explanation of (A).

 
 

Option: C

Explanation :




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