Classical

Business Economics - Business Economics Objective Type Questions

46:  
A monopolist charging high price operates on
A.
The constant elastic part of a demand curve
B.

The inelastic part of a demand curve

C.

The elastic part of a demand curve

D.

Ignores elasticity of demand altogether

 
 

Option: B

Explanation :


47:  

When a monopolist is in

A.
Long-run equilibrium, he mayor may not be in short-run equilibrium
B.
Long-run equilibrium, he will also be in short-run equilibrium
C.
Short-run equilibrium, he will also be in long-run equilibrium
D.

None of the above

 
 

Option: B

Explanation :


48:  
The kinked demand curve theory explains that even when the demand conditions ........... the price ............ .
A.

Change, changes

B.

Change, remains stable

C.

Remain stable, change

D.

Remain stable, rise

 
 

Option: B

Explanation :


49:  
Under monopoly the supply curve is absent because
A.

There is no entry for others

B.

The monopolist always makes profit

C.
Equilibrium involves MC = MR and MC<P
D.

The monopolist controls the supply

 
 

Option: C

Explanation :


50:  
In monopoly, the relationship between average revenue and marginal revenue curves is as follows:
A.
Average revenue curve lies above the MR-curve
B.

AR curve lies below the MR-curve

C.

AR curve coincides with the MR-curve

D.

AR curve is parallel to the MR-curve

 
 

Option: A

Explanation :




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