Classical

Business Economics - Business Economics Multiple Choice Questions

41:  

Total production will be maximum when

A.

Marginal production is maximum

B.

Average production is maximum

C.

Marginal production is zero

D.
Average production is equal to the marginal production
 
 

Option: C

Explanation :

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42:  
Price discrimination policy helps in increasing profit in case of
A.

Perfect competition

B.

Monopolistic competition

C.

Monopoly

D.

Oligopoly

 
 

Option: C

Explanation :

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43:  
In perfect competition in the long run there will be no
A.

Normal profit

B.

Supernormal profits

C.

Production

D.

Costs

 
 

Option: B

Explanation :

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44:  
When demand curve is rectangular hyper-bola the elasticity of demand will be
A.

Perfectly elastic

B.

Unit elastic

C.

Perfectly inelastic

D.

Highly elastic

 
 

Option: B

Explanation :

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45:  

Which of the following is a correct statement

A.
Decrease in input prices causes a left word shift in the supply curve
B.
The desire for a commodity backed by ability and willingness to pay is demanded.
C.
When income increases demand for essential good increase, more than proportionately.
D.
The demand for a commodity is inversely related to the price of its substitutes.
 
 

Option: B

Explanation :

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