Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

61:  

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 :


62:  

Increasing returns to scale can be explained in terms of

A.

Optimum factor proportions

B.

Fixed scale of plant

C.

External and internal economies

D.

Labour productivity

 
 

Option: C

Explanation :


63:  

If AR curve is a falling straight line, MR curve will lie below it in such a way that any line drawn from a point from Y-axis parallel to X-axis to meet the AR curve is intersected by the MR curve

A.

Mid-way

B.

Less than half-way

C.

More than half-way

D.

Anywhere

 
 

Option: A

Explanation :


64:  

When the average product is at its maximum, the equality can be reached between

A.

The marginal product and primary product

B.

The marginal product and average product

C.

The marginal product and total product

D.

The marginal product and final product

 
 

Option: B

Explanation :


65:  

Price discrimination is possible

A.

When elasticities cannot be known

B.

When elasticities of demand are different in different markets at the ruling price

C.

When elasticities of demand in different markets are the same at the ruling price

D.

None of these

 
 

Option: B

Explanation :




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