Classical

Managerial Economics - Managerial Economics MCQ

56:  

On an indifference map, if the income consumption curve slopes downwards to the right it shows that

A.

Both X and Y are superior goods

B.

Y is an inferior good

C.

X is an inferior good

D.

Both X and Y are inferior goods

 
 

Option: B

Explanation :


57:  

An entrepreneur will stay in business in the long run as long as he meets

A.

Variable costs of production

B.

Fixed costs of production

C.

All costs of production

D.

None of these

 
 

Option: D

Explanation :


58:  

Under bilateral monopoly the price is higher if

A.

The monopolist has his way

B.

The monopsonist has his way

C.

The monopolist acts as a competitor

D.

The monopsonist sells his own product in a monopoly market

 
 

Option: A

Explanation :


59:  

A perfectly competitive firm will always expand output as long as

A.

Rising marginal cost is less than the average cost

B.

Rising marginal cost is less than the marginal revenue

C.

Rising marginal cost is less than price

D.

None of the above

 
 

Option: D

Explanation :


60:  

Expanding output till the rising marginal cost is less than price, is the nature of

A.

Perfectly competitive industry

B.

Perfectly competitive market

C.

Perfectly competitive firm

D.

Imperfectly competitive market

 
 

Option: C

Explanation :




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