Classical

Managerial Economics - Managerial Economics Objective Type Questions

51:  

If two commodities are substitutes, a change in the price of the one, ceteris paribus, causes a change in the quantity purchased of the other

A.

In the same direction

B.

In an insignificant manner

C.

In the opposite direction

D.

Cannot be known

 
 

Option: A

Explanation :


52:  

"The more nearly perfect a market is, the stronger is the tendency for the same price to be paid for the same thing at the same time in all parts of the market" is the definition of perfect competition by

A.

Jevons

B.

J. S. Mill

C.

Prof. Benham

D.

Prof. Marshall

 
 

Option: D

Explanation :


53:  

A high value of cross-elasticity indicates that the two commodities are

A.

Very good substitutes

B.

Good complements

C.

Poor substitutes

D.

Poor complements

 
 

Option: A

Explanation :


54:  

The limit to the long-run growth of a firm under imperfectly competitive conditions is set by

A.

Fear of rising costs

B.

Fear or prices falling more than costs

C.

Fear of falling demand

D.

Fear of external diseconomies

 
 

Option: B

Explanation :


55:  

If a commodity sold under monopoly is got free of cost, MC curve will be

A.

Identical with the X-axis

B.

Identical with Y-axis

C.

A horizontal straight line above X-axis

D.

Identical with the MR

 
 

Option: A

Explanation :




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