Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

86:  

Ceteris paribus, a change in the price of a commodity causes the quantity purchased of its complements to move

A.

In an insignificant manner

B.

In the opposite direction

C.

In the same direction

D.

cannot be known

 
 

Option: B

Explanation :


87:  

The Law of equi-marginal utility tells that if price of commodity falls

A.

More units of it will be bought

B.

Same units of it will be bought

C.

Less units of it will be marginal bought

D.

Nothing of it will be bought

 
 

Option: A

Explanation :


88:  

Each short-run average cost curve coincides with long run cost curve

A.

At middle point

B.

At lower point

C.

At upper point

D.

No permanent position

 
 

Option: B

Explanation :


89:  

A demand curve is a boundary concept because it shows

A.

The minimum price and minimum quantity

B.

The maximum price and minimum quantity

C.

The maximum quantity and the minimum price

D.

Both price and quantity is maximum

 
 

Option: C

Explanation :


90:  

Which of the following is called as the Gossen's First Law?

A.

The Law of equi-marginal utility

B.

Law of Substitution

C.

The Law of diminishing marginal utility

D.

The Law of indifference

 
 

Option: C

Explanation :




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