Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

46:  

Consider a demand curve which takes the form of a straight line cutting both axis. Elasticity at the mid-point of the line would be

A.

1.5

B.

1.0

C.

0

D.

2.0

 
 

Option: B

Explanation :


47:  

In long run competitive equilibrium

A.

The marginal firm will earn no profit

B.

Every firm will incur losses

C.

Every firm will earn only normal profit

D.

Every firm will earn economic profit

 
 

Option: C

Explanation :


48:  

A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand

A.

Remains the same

B.

Decreases

C.

Increases

D.

is zero

 
 

Option: B

Explanation :


49:  

In the long-run, due to blocked entry pure profits can be made by

A.

Pure duopolist

B.

Pure monopolist

C.

Pure oligopolist

D.

None of the above

 
 

Option: B

Explanation :


50:  

Risk neutrality implies a

A.

constant utility of income.

B.

constant marginal utility of income.

C.

diminishing marginal utility of income.

D.

increasing marginal utility of income.

 
 

Option: B

Explanation :




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