Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

71:  

Short-run cost curves are influenced by

A.

External and internal economies and diseconomies

B.

Law of variable proportions

C.

Principle of returns to scale

D.

None of these

 
 

Option: B

Explanation :


72:  

With increasing returns to scale, the equilibrium in a market is incomplete. This is

A.

Only in the case of perfectly competitive market

B.

Only in the case of monopolistic market situations

C.

Only in the case of imperfectly competitive market

D.

None of the above

 
 

Option: A

Explanation :


73:  

Under monopoly and imperfect competition, MC is

A.

Equal to the price

B.

Less than the price

C.

More than the price

D.

Anyone of the above

 
 

Option: B

Explanation :


74:  

The economic analysis expects the consumer to behave in a manner

A.

Rational

B.

Emotional

C.

Irrational

D.

Indifferent

 
 

Option: A

Explanation :


75:  

If the total cost curve is plotted, marginal cost can be illustrated by

A.

A straight line from the origin to the midpoint of the curve

B.

The slope of a tangent to the curve at any given output

C.

AU-Shaped curve cutting the total cost curve at its lowest point

D.

A straight line cutting the curve at its lowest point

 
 

Option: B

Explanation :




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