Classical

Business Economics - Business Economics Objective Type Questions

41:  

The imposition of a ceiling on a monopolist's price will affect his

A.

Equilibrium output only

B.

Average revenue in the short-run only

C.

Profits only

D.

Equilibrium output and profits

 
 

Option: D

Explanation :


42:  
A monopolist will fix the equilibrium output of his product where the elasticity of his AR curve is
A.

Equal to or less than one

B.

Greater than or equal to one

C.

Less than one but more than zero

D.

Zero

 
 

Option: C

Explanation :


43:  
On an indifference map, higher indifference curves show
A.
Levels of satisfaction among which the consumer is indifferent
B.

The optimum level of satisfaction

C.

The higher level of utility

D.

The same lower level of satisfaction

 
 

Option: C

Explanation :


44:  
Which of the following is true at equilibrium in monopolistic competition?
A.

Price is greater than marginal cost

B.
Average revenue is greater than marginal revenue
C.

Both (A) and (B)

D.
Average revenue is equal to marginal revenue
 
 

Option: C

Explanation :


45:  
The difference between monopoly equilibrium and competitive equilibrium is
A.
The MC should rise at the point of equilibrium under perfect competition whereas under monopoly it can rise, fall or remain constant
B.
Under perfect competition, the MC = MR whereas under monopolistic conditions this need not be the case
C.

There is no difference at all

D.

None of the above

 
 

Option: A

Explanation :




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