Classical

Business Economics - Business Economics Objective Type Questions

26:  
In the long run, under perfect competition price of the factor is equal to
A.

Marginal revenue product (MRP)

B.

Average revenue product (ARP)

C.

Both (A) and (B)

D.

Marginal physical product

 
 

Option: C

Explanation :


27:  
The elasticity of substitution between two inputs in CES production function
A.

Decreases continuously

B.

Increases continuously

C.

Remains constant

D.

None of these

 
 

Option: C

Explanation :


28:  

Bilateral monopoly means

A.
A monopoly seller buying his input from many suppliers
B.

Two rival buyers only

C.

Two rival sellers only

D.

A monopolist facing a monopsonist

 
 

Option: D

Explanation :


29:  
Which of the following is an assumption of the model of perfect competition?
A.

Product homogeneity

B.

No government regulation

C.

Perfect mobility of factors of production

D.

All of the above

 
 

Option: D

Explanation :


30:  
Monopoly exploitation is reduced by regulation that
A.

restricts output.

B.

enhances product-market competition.

C.
increases the bargaining power of workers.
D.
increases the bargaining power of employers
 
 

Option: B

Explanation :




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