Classical

Managerial Economics - Managerial Economics MCQ

71:  

At the shut-down point

A.

The total losses of the firm equal TFC

B.

TR = TVC

C.

P = AVC

D.

All of the above

 
 

Option: D

Explanation :


72:  

One way the government can induce a monopolist to expand his output is by imposing

A.

A price floor that makes the monopolist raise his price

B.

A price ceiling that makes the monopolist lower his price

C.

A specific tax on the monopolist's output

D.

A heavy tax on the monopolist's profits

 
 

Option: B

Explanation :


73:  

When the consumer's income increases, the budget line on an indifference map moves to

A.

A parallel position to the right

B.

A parallel position to the origin

C.

A parallel position to the left

D.

None of the above

 
 

Option: A

Explanation :


74:  

Bilateral monopoly means

A.

A monopoly seller buying his input from many suppliers

B.

Two rival buyers only

C.

Two rival sellers only

D.

A monopolist facing a monopsonist

 
 

Option: D

Explanation :


75:  

The equilibrium level of output for the pure monopolist is where

A.

MR = MC

B.

P < AC

C.

MR < MC

D.

MR > MC

 
 

Option: A

Explanation :




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