Classical

Managerial Economics - Managerial Economics Objective Type Questions

81:  

If more is demanded at the same price or the same quantity is demanded at a higher price, this is known as

A.

Contraction of demand

B.

Extension of demand

C.

Increase in demand

D.

Decrease in demand

 
 

Option: C

Explanation :


82:  

If a monopolist is producing under decreasing cost conditions, increase in demand is beneficial to the society because

A.

Goods will be sold in many markets

B.

Cost of production falls and hence price

C.

Consumers get better quality goods

D.

None of the above answer is correct

 
 

Option: B

Explanation :


83:  

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 :


84:  

When the APL is positive but declining, the MPL could be

A.

Negative

B.

Zero

C.

Declining

D.

Any of the above

 
 

Option: D

Explanation :


85:  

The doctrine of consumer's surplus is based on

A.

Law of substitution

B.

Revealed preference theory

C.

Indifference curve analysis

D.

The law of diminishing marginal utility

 
 

Option: D

Explanation :




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