Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

91:  

A monopolist charging high price operates on

A.

The constant elastic part of a demand curve

B.

The inelastic part of a demand curve

C.

The elastic part of a demand curve

D.

Ignores elasticity of demand altogether

 
 

Option: B

Explanation :

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92:  

In the long run, competitive equilibrium theory predicts that

A.

There is no incentive for entry or exit of firms

B.

Firms operate at a minimum average total cost

C.

TC = TR and MC = MR

D.

All these conditions exist

 
 

Option: D

Explanation :

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93:  

Which is an inverted 'U' shaped curve?

A.

FC

B.

MC

C.

TC

D.

AC

 
 

Option: B

Explanation :

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94:  

In general, most of the production functions measure

A.

The economies of scale

B.

The relation between the factors of production

C.

The productivity of factors of production

D.

The relations between change in physical inputs and physical output

 
 

Option: D

Explanation :

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95:  

If the supply curve remains unchanged and the demand increases, the price will

A.

Increase

B.

Remain the same

C.

Decrease

D.

None of the above

 
 

Option: A

Explanation :

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