Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

36:  

A comparison of monopoly and cartel reveals that

A.

Like monopoly, cartel also maximizes revenue of its members

B.

Monopoly and cartel differ in the manner they reach their pricing decisions

C.

Unlike monopoly, all members of cartel maximize

D.

None of the above

 
 

Option: C

Explanation :


37:  

If a straight line demand curve is tangent to a curvilinear demand curve, the elasticity of the two demand curves at the points of tangency is

A.

The same

B.

Can be the same or different

C.

Different

D.

Depends on the location of the point of tangency

 
 

Option: A

Explanation :


38:  

If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is

A.

Equal to 1

B.

Greater than 1

C.

Less than 1

D.

Zero

 
 

Option: C

Explanation :


39:  

Even if costs increase, the MC remains unaffected, the cost is

A.

Total fixed cost

B.

Fixed cost

C.

Variable cost

D.

Average cost

 
 

Option: B

Explanation :


40:  

Clark-Wicksteed product exhaustion theorem says that

A.

Given a linearly homogenous production function, the product is exhausted

B.

Total product is exhausted only under laissez-faire

C.

In long-run competitive equilibrium, the total product will be exhausted in rewarding the factors

D.

Total product is exhausted only under conditions of monopoly

 
 

Option: A

Explanation :




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