Classical

Business Economics - Business Economics Multiple Choice Questions

31:  
When marginal utility is negative then total utility
A.

Increase

B.

Decrease

C.

is zero

D.

is negative

 
 

Option: B

Explanation :


32:  
Under kinked demand model, the demand curve for the firm's product is drawn on the assumption that
A.
All rivals charge the same price which is charged by the oligopolist
B.
All rivals charge a price independent of the price charged by the oligopolist
C.
All rivals follow the oligopolist upto certain price but beyond that they do not.
D.
All oligopolist charges the price as independent sellers.
 
 

Option: C

Explanation :


33:  

'Kinked' demand curve is related with

A.

Monopoly

B.

Discriminating monopoly

C.

Oligopoly

D.

Perfect competition

 
 

Option: C

Explanation :


34:  

In a typical demand schedule, quantity demanded

A.

Varies directly with price

B.

Varies proportionately with price

C.

Varies inversely with price

D.

Is independent of price

 
 

Option: C

Explanation :


35:  

Which of the following is not the feature of monopolistic competition.

A.

Fairly large number of firms

B.
Co-existence of efficient and inefficient firms
C.

Product homogeneity

D.

Independent price-output policy

 
 

Option: C

Explanation :




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