Classical

Managerial Economics - Managerial Economics Objective Type Questions

31:  

Income-Elasticity of demand will be zero when a given change in income brings about

A.

The same proportionate change in demand

B.

A more than proportionate change in quantity demanded

C.

A less than proportionate change in quantity demanded

D.

No change in demand

 
 

Option: D

Explanation :


32:  

The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs

Combination   Output (units)

1L + 1K          200

2L + 2K          400

3L + 3K          600

4L + 4K          800

5L + 5K          1000

This table shows the

A.

Constant returns to scale

B.

Increasing returns to scale

C.

Diminishing returns to scale

D.

None of the above

 
 

Option: A

Explanation :


33:  

When AR is falling, MR will be

A.

More than AR

B.

Less than AR

C.

Equal to AR

D.

Either more or equal to AR

 
 

Option: B

Explanation :


34:  

At the point of producers equilibrium

A.

MPL/PL = MPK/PK

B.

The MRTSLK equals PL/PK

C.

The Iso-quant is tangent to the Iso-cost

D.

All of the above

 
 

Option: D

Explanation :


35:  

A loss bearing firm will continue to produce in the short run so long as the price at least covers

A.

Average variable costs

B.

Marginal costs

C.

AVC+AFC

D.

Average fixed costs

 
 

Option: A

Explanation :




Suggest an improvement