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 : Click on Discuss to view users comments. |
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 : Click on Discuss to view users comments. |
Which is an inverted 'U' shaped curve?
A. | FC |
B. | MC |
C. | TC |
D. | AC |
Option: B Explanation : Click on Discuss to view users comments. |
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 : Click on Discuss to view users comments. |