Classical

Managerial Economics - Managerial Economics Objective Type Questions

41:  

At the point of inflexion, the marginal utility is

A.

Negative

B.

Decreasing

C.

Maximum

D.

Increasing

 
 

Option: C

Explanation :


42:  

The point on which the average cost is minimum in a firm short-run average cost curve will also be the minimum cost point on the firm's long run average cost curve. This is true

A.

When LAC is falling

B.

Never

C.

Always

D.

Only at that level of output when LAC is at its minimum

 
 

Option: D

Explanation :


43:  

Which form of monopoly regulation is most advantageous for the consumer?

A.

Price control

B.

Lump sum tax

C.

Per unit tax

D.

All of the above three forms are equally advantageous

 
 

Option: A

Explanation :


44:  

To maximise profits during short run, a firm should produce the output that will

A.

Maximise marginal revenue

B.

Yield maximum total revenue

C.

Minimise marginal cost

D.

Equate marginal revenue with marginal cost

 
 

Option: D

Explanation :


45:  

The area which lies under the demand curve for a given good measures

A.

Disutility

B.

Total utility

C.

Marginal utility

D.

Marginal cost of production

 
 

Option: B

Explanation :




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