Classical

Managerial Economics - Managerial Economics MCQ

91:  

In a monopoly market, an upward shift in the market demand results in a new equilibrium with

A.

A higher quantity and a lower price

B.

A higher quantity and the same price

C.

A higher quantity and higher price

D.

All the above

 
 

Option: D

Explanation :


92:  

Government regulation is important because government

A.

uses scarce resources.

B.

regulation reduces public-sector employment.

C.

produces most of society's services output.

D.

produces most of society's material output.

 
 

Option: A

Explanation :


93:  

Price control is one of the monopoly regulations which is most advantageous for

A.

The government

B.

The consumer

C.

The producer

D.

The seller

 
 

Option: B

Explanation :


94:  

When the units of factor increases, marginal revenue productivity of a factor

A.

Will fall or diminish

B.

Will have no change

C.

Will rise or increase

D.

None of the above

 
 

Option: A

Explanation :


95:  

In the case of an inferior good, the income effect

A.

Partially offsets the substitution effect

B.

Is equal to the substitution effect

C.

Reinforces the substitution effect

D.

More than offsets the substitution effect

 
 

Option: A

Explanation :




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