Classical

Business Economics - Business Economics Questions

36:  

Assertion (A). The demand for the product of a firm under oligopoly is at price higher than the prevailing market price.

Reason (R). The oligopolistic firm faces a kinked demand curve.

A.

Both (A) and (R) are false.

B.

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

C.

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

D.

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

 
 

Option: D

Explanation :


37:  
When quantity demanded changes due to factors other than price, it is called
A.

increase in demand

B.

decrease in demand

C.

Both (a) and (b)

D.

None of these

 
 

Option: C

Explanation :


38:  
Assertion (A). "Utility will be maximised when the marginal unit of expenditure in each direction brings the same incremental utility.
Reason (R). A consumer will try to maximise his utility.

 

A.
Both (A) and (R) are true and (R) is correct explanation of (A).
B.
Both (A) and (R) are true but (R) is not correct explanation of (A).
C.

Both (A) and (R) are false.

D.

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

 
 

Option: B

Explanation :


39:  

The perfect competition is characterised by

A.

seller as price taker

B.

firms selling identical products

C.

presence of many firms

D.

all of these

 
 

Option: D

Explanation :


40:  
The term 'revealed preference' was introduced in the book by
A.

Das Capital

B.

Affluent Society

C.

Foundations of Economic Analysis

D.

None of these

 
 

Option: C

Explanation :




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