Classical

Managerial Economics - Managerial Economics Multiple Choice Questions

41:  

Generally the profits are maximised in the short run at the point at which

A.

Marginal cost of production is equal to the marginal return

B.

Marginal return is zero

C.

Marginal return is negative

D.

Marginal cost is zero

 
 

Option: A

Explanation :


42:  

The market period supply curve for perishable commodities is

A.

Perfectly elastic

B.

Perfectly inelastic

C.

Relatively elastic

D.

Relatively inelastic

 
 

Option: B

Explanation :


43:  

In which case the elasticity shown by the different points of a curve is the same?

A.

A rectangular hyperbola curve

B.

A downward sloping curve

C.

A straight line curve

D.

None of these

 
 

Option: A

Explanation :


44:  

When with a change in price the total outlay on a commodity remains constant, it is a case of

A.

Perfect inelasticity

B.

Perfect elasticity

C.

Unit elasticity

D.

Zero elasticity

 
 

Option: C

Explanation :


45:  

When the perfectly competitive firm and industry are both in long run equilibrium

A.

D = MR = SMC = LMC

B.

P = MR = SAC = LAC

C.

P = MR = Lowest point on the LAC curve

D.

All of the above

 
 

Option: C

Explanation :




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