Classical

Managerial Economics - Managerial Economics MCQ

86:  

By "normal profits" is meant

A.

The surplus profit made by the least efficient firms

B.

The payment made to the marginal entrepreneur for his abilities

C.

The profit made by the marginal entrepreneur in a normal year

D.

The payment needed to keep an entrepreneur in an industry

 
 

Option: D

Explanation :

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87:  

If a single monopolist enjoying internal economies of scale is replaced by a large number of producers operating under perfect competition, it may be said that

A.

Both price and output will rise

B.

Price will increase and output will fall

C.

Price will increase but the effect on output will be indeterminate

D.

Output will fall but the effect on price will be indeterminate

 
 

Option: C

Explanation :

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88:  

In all forms of imperfect competition the average revenue curve facing the individual slopes

A.

Horizontally

B.

Downward

C.

Upward

D.

Vertically

 
 

Option: B

Explanation :

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89:  

Which of the following is one of the assumptions of the indifference curve analysis?

A.

Independent utility

B.

Ordinal utility

C.

Cardinal utility

D.

Constant marginal utility of money

 
 

Option: B

Explanation :

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90:  

Under price discrimination, price will be higher in the market where demand is

A.

Highly elastic

B.

Unitary elastic

C.

Less elastic

D.

None of the above

 
 

Option: C

Explanation :

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