Classical

Business Economics - Business Economics Objective Type Questions

11:  
The Law of equi-marginal utility tells that if price of commodity falls
A.

More units of it will be bought

B.

Same units of it will be bought

C.

Less units of it will be marginal bought

D.

Nothing of it will be bought

 
 

Option: A

Explanation :


12:  
A demand curve is a boundary concept because it shows
A.
The minimum price and minimum quantity
B.
The maximum price and minimum quantity
C.
The maximum quantity and the minimum price
D.

Both price and quantity is maximum

 
 

Option: C

Explanation :


13:  
Under the perfect competition, the transportation cost
A.
Is considered to be negligible and thus, ignored
B.
Is charged along with the price of the commodity
C.
Is considered to be vital for the calculation of total cost
D.

Excluded from the prime cost

 
 

Option: A

Explanation :


14:  

A monopoly producer has

A.

Control over production but not price

B.

Control over production, price and consumers

C.
Control neither on production nor on price
D.

Control over production as well as price

 
 

Option: D

Explanation :


15:  
Under perfect market and in case of decreasing marginal cost the firm's equilibrium with respect to level of production
A.

Cannot be achieved

B.
Can be achieved after a high level of output
C.
Can be achieved after a small level of output
D.

Will result in run-away inflation

 
 

Option: A

Explanation :




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