Classical

Managerial Economics - Managerial Economics Objective Type Questions

26:  

Consumer's surplus is the highest in the case of

A.

Necessities

B.

Luxuries

C.

Comforts

D.

Conventional necessities

 
 

Option: A

Explanation :


27:  

The term optimum allocation on consumer's expenditure on various goods and services is used in

A.

Giffen paradox

B.

Law of demand

C.

Law of equi-marginal utility

D.

Law of diminishing marginal utility

 
 

Option: C

Explanation :


28:  

If ATC curve is a rising straight line, then as output expands, MC curve will

A.

Both will be the same

B.

Lie below the ATC curve

C.

Lie above the ATC curve

D.

Any of the above

 
 

Option: C

Explanation :


29:  

The LAC curve

A.

Goes through the lowest point of the LMC curve

B.

Rises when the LMC curve rises

C.

Falls when the LMC curve falls

D.

Falls when LMC < LAC and rises when LMC > LAC

 
 

Option: D

Explanation :


30:  

A concept which has importance in the equilibrium analysis and thus economic analysis is

A.

Opportunity cost

B.

TFC

C.

AFC

D.

MC

 
 

Option: D

Explanation :




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