Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

81:  

In conditions of pure competition, in which the demand for a firm's product is infinitely elastic, the firm's average revenue curve will be

A.

U shaped

B.

A horizontal straight line

C.

A vertical straight line

D.

A straight line at 45° to the horizontal axis

 
 

Option: B

Explanation :


82:  

The Revealed Preference Theory was formulated by

A.

Joan Robinson

B.

Paul Samuelson

C.

Lionel Robbins

D.

Aired Marshall

 
 

Option: B

Explanation :


83:  

Which of the following statement is correct?

A.

When the slope of the demand curve is zero, demand is infinitely elastic and when the slope is infinite, elasticity is zero

B.

When the slope of the demand curve is zero, elasticity is unity and also when the slope is infinite, elasticity is unity

C.

When the slope of the demand curve is zero, elasticity is also zero and when the slope is infinite, elasticity is also infinite.

D.

None of these

 
 

Option: A

Explanation :


84:  

The normal long run average cost curve is influenced by the

A.

Principle of diminishing returns

B.

Economies and diseconomies of large scale production

C.

Principle of constant returns to scale

D.

All of the above

 
 

Option: B

Explanation :


85:  

Written in this form, the CES constant Elasticity of substitution production function exhibits

A.

Decreasing returns to scale

B.

Constant returns to scale

C.

Increasing returns to scale

D.

None of these

 
 

Option: B

Explanation :




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