Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

56:  

Indifference curve is downward sloping from left to right since more x and less y give

A.

Less satisfaction

B.

More satisfaction

C.

Equal satisfaction

D.

Maximum satisfaction

 
 

Option: C

Explanation :


57:  

Which of the following statements is correct or more nearly correct?

A.

If the price of a commodity falls, its value relative to other goods does not change

B.

Value has nothing to do with price

C.

An increase in the price of commodity represents a fall in its value

D.

The price of a good is its value measured in terms of money

 
 

Option: D

Explanation :


58:  

An increase in a firm's fixed costs will

A.

Change total costs but not marginal costs

B.

Change both marginal and total costs

C.

Change variable costs but not marginal costs

D.

Change marginal costs but not total costs

 
 

Option: C

Explanation :


59:  

"The opportunity cost of using any factor is what is currently forgone by using it." This definition of opportunity cost is given by

A.

Marshall

B.

Prof. Lipsey

C.

Joan Robinson

D.

Paul A. Samuelson

 
 

Option: B

Explanation :


60:  

A monopoly producer usually earns

A.

Abnormal profits

B.

Neither profits nor losses

C.

Only normal profits

D.

Profits and losses which are uncertain

 
 

Option: A

Explanation :




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