Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

66:  

If the firms under perfect competition have different costs, abnormal profits will be earned in the long run only by

A.

Marginal firm

B.

All the firms

C.

Intramarginal firms

D.

None of the firms

 
 

Option: C

Explanation :


67:  

As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases, but at a diminishing rate. This is

A.

An economic law

B.

A statement of fact

C.

A hypothesis

D.

None of the above

 
 

Option: C

Explanation :


68:  

Which of the stages is relevant range for a rational firm in the competitive situation in the following diagram?

                 

A.

Stage I

B.

Stage II

C.

Stage III

D.

None of the above

 
 

Option: B

Explanation :


69:  

The indifference curve which is 'L' shaped represents

A.

Perfect complementarity

B.

Perfect substitutability

C.

No substitutability

D.

Non complementarity

 
 

Option: A

Explanation :


70:  

The point which shows the maximum marginal product in the total product curve represents

A.

Expansion path

B.

Producer's equilibrium

C.

Least cost combination

D.

Point of inflexion

 
 

Option: D

Explanation :




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