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 |
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Option: B Explanation : Click on Discuss to view users comments. |
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 |
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Option: D Explanation : Click on Discuss to view users comments. |
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 |
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Option: A Explanation : Click on Discuss to view users comments. |
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 |
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Option: D Explanation : Click on Discuss to view users comments. |
