Classical

Managerial Economics - Managerial Economics Objective Type Questions

96:  

Average fixed costs

A.

Increase as output increases

B.

Remain the same whatever the level of output

C.

Diminish as output increases

D.

Do not show any uniform pattern

 
 

Option: C

Explanation :


97:  

Ordinal approach is based on

A.

Utility could not be measured in ordinal numbers

B.

Utility could not be measured in cardinal numbers

C.

Law of maximum satisfaction

D.

Utility can be measured

 
 

Option: B

Explanation :


98:  

Of the following, which one corresponds to fixed cost?

A.

Transportation charges

B.

Payments for raw material

C.

Labour costs

D.

Insurance premium on property

 
 

Option: D

Explanation :


99:  

The marginal product curve is above the average product curve when the average product is

A.

Becomes constant

B.

Increasing

C.

Decreasing

D.

None of the above

 
 

Option: B

Explanation :


100:  

If the individual firm's demand curve is coincident with the market demand curve then

A.

Marginal revenue is equal to average revenue

B.

The firm is a monopolist

C.

The firm can set any price it wants without limitation

D.

The firm is price-taker

 
 

Option: B

Explanation :




Suggest an improvement