Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

51:  

With the expansion of output, the short-run average cost curve, beyond a point, starts rising because

A.

More production yields lower per unit price

B.

Average fixed cost increases sharply

C.

The law of variable proportions applies to short-run production

D.

Sales expenses become much larger

 
 

Option: C

Explanation :


52:  

Total utility curve is

A.

Concave to x-axis

B.

Concave or convex depending on situations

C.

Convex to x-axis

D.

Concave to y-axis

 
 

Option: A

Explanation :


53:  

Two commodities are considered to be perfect substitutes for each other if the elasticity of substitution is

A.

Zero

B.

Negative

C.

Positive

D.

Infinite

 
 

Option: D

Explanation :


54:  

Which of the following is the method of measuring elasticity of demand when change in price of a commodity is substantial?

A.

Point method

B.

Percentage method

C.

Arc method

D.

None of these

 
 

Option: C

Explanation :


55:  

The slope of the TVC or total cost curve indicates the

A.

Average cost

B.

Marginal revenue

C.

Marginal cost

D.

Variable cost

 
 

Option: C

Explanation :




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