Classical

Managerial Economics - Managerial Economics Objective Type Questions

16:  

The MC curve reaches its minimum point before the AVC curve and the AC curve. In addition the MC curve intersects the AVC curve and the AC curve at their lowest point. The above statements are both true

A.

Always

B.

Often

C.

Never

D.

Sometimes

 
 

Option: C

Explanation :


17:  

If cross-elasticity of one commodity for another turns out to be zero, it means they are

A.

Good complements

B.

Close substitutes

C.

Completely unrelated

D.

None of these

 
 

Option: C

Explanation :


18:  

The case of a right angled indifference curve occurs when

A.

The two goods are perfect complement

B.

The two goods are normal

C.

The two goods are inferior

D.

The two goods are perfect substitutes

 
 

Option: A

Explanation :


19:  

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

A.

Monopoly

B.

Perfect competition

C.

Imperfect competition

D.

Monopsony

 
 

Option: B

Explanation :


20:  

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 :




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