Classical

Business Economics - Business Economics Objective Type Questions

21:  
A profit-maximising monopolist in two separate markets will
A.
Always charge a higher price in the market where he sells less
B.
Always charge a higher price in the market where he sells more
C.

Charge the same price in both markets

D.
Adjust his sales in the two markets so that his MR in each market just equals his aggregate marginal cost
 
 

Option: D

Explanation :


22:  
Under bilateral monopoly the price is higher if
A.

The monopolist has his way

B.

The monopsonist has his way

C.

The monopolist acts as a competitor

D.
The monopsonist sells his own product in a monopoly market
 
 

Option: A

Explanation :


23:  

A monopoly producer usually earns

A.

Abnormal profits

B.

Neither profits nor losses

C.

Only normal profits

D.

Profits and losses which are uncertain

 
 

Option: A

Explanation :


24:  
The size of a monopolist's plant and the degree of utilisation of any given plant size, depend entirely on the
A.

Factor price

B.

Price of the good

C.

Market demand

D.

Market Supply

 
 

Option: C

Explanation :


25:  

Break-even point for a firm occurs where its

A.

Total Revenue > Total cost

B.

Total Revenue < Total cost

C.

Total Revenue = Total cost

D.

None of the above

 
 

Option: C

Explanation :




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