Classical

Business Economics - Business Economics Objective Type Questions

31:  
The Law of Diminishing Returns depends on the assumption that
A.

Land is the factor kept constant

B.

The state of technical knowledge is unchanged

C.

Total output is constant

D.
Average output declines faster than marginal output
 
 

Option: B

Explanation :

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32:  

Monopoly equilibrium can be reached when

A.

Marginal cost is rising

B.

Marginal cost is remaining constant

C.

Marginal cost is falling

D.

All of the above

 
 

Option: D

Explanation :

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33:  
The equilibrium level of output for the pure monopolist is where
A.

MR = MC

B.

P < AC

C.

MR < MC

D.

MR > MC

 
 

Option: A

Explanation :

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34:  
The Law of Dirninishing Returns is applied to all fields of production was stated by
A.

A. C. Pigou

B.

Walras

C.

Alfred Marshall

D.

David Ricardo

 
 

Option: C

Explanation :

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35:  
The market period supply curve for perishable commodities is
A.

Perfectly elastic

B.

Perfectly inelastic

C.

Relatively elastic

D.

Relatively inelastic

 
 

Option: B

Explanation :

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