The Revealed Preference Theory is based on
| A. | Introspection |
| B. | Utility and demand |
| C. | The assumption of indifference |
| D. | Observed consumer behaviour |
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Option: D Explanation : Click on Discuss to view users comments. |
One would expect a firm to close down rather than continue producing in the short-period if
| A. | Variable costs were to fall below fixed costs |
| B. | Total revenue were less than total variable cost |
| C. | Total revenue were more than total variable cost |
| D. | Variable costs were to rise above fixed costs |
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Option: B Explanation : Click on Discuss to view users comments. |
Marginal Utility (MU) curve is always
| A. | Parallel to X-axis |
| B. | Falling |
| C. | Rising |
| D. | Parallel to Y-axis |
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Option: B Explanation : Click on Discuss to view users comments. |
The Law of Diminishing Returns depends on the assumption that
| A. | Land is the factor kept constant |
| B. | The state of technical knowledge is unchanged |
| C. | Total output is constant |
| D. | Average output declines faster than marginal output |
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Option: B Explanation : Click on Discuss to view users comments. |
MRn = TRn - TRn_1 is the algebraic expression of
| A. | Information is insufficient |
| B. | Marginal Revenue, the change in total revenue when there is a change in quantity sold of the product. |
| C. | The addition to TR earned by selling n units of product instead of (n-1) units |
| D. | None of the above |
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Option: B Explanation : Click on Discuss to view users comments. |
