Classical

Managerial Economics - Managerial Economics Objective Type Questions

61:  

The economically relevant range of the total utility curve is the portion over which

A.

The total utility is rising at a declining rate

B.

The total utility is maximum and constant

C.

The total utility is rising at an increasing rate

D.

The total utility is declining

 
 

Option: A

Explanation :


62:  

If the factor prices and factor quantities move in the same direction, we have

A.

A decreasing cost industry

B.

A constant cost industry

C.

An increasing cost industry

D.

Inadequate data to tell precisely what will happen

 
 

Option: C

Explanation :


63:  

While analysing Marshall's measure of consumer's surplus one assumes

A.

Monopoly

B.

Perfect competition

C.

Imperfect competition

D.

Monopsony

 
 

Option: B

Explanation :


64:  

At the point where a straight line from the origin is tangent to the TC curve, AC

A.

Equals AVC plus AFC

B.

Equals MC

C.

Is minimum

D.

All of the above

 
 

Option: D

Explanation :


65:  

In short run, the law of variable proportions is also known as the

A.

Law of constant returns

B.

Law of diminishing returns

C.

Law of increasing returns

D.

Law of return to scale

 
 

Option: B

Explanation :




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