Classical

Managerial Economics - Managerial Economics MCQ

26:  

In perfect competition, there is a process of

A.

Restricted entry and exit of the firms

B.

Free entry and free exit of the firms

C.

Free entry but restricted exit of the firms

D.

Semi-free exit but absolute free entry

 
 

Option: B

Explanation :


27:  

'The increasing returns to scale occurs because larger scale provides greater specialisation to various factors' according to

A.

Paul A. Samuelson

B.

Alfred Marshall

C.

Chamberlain

D.

Joan Robinson

 
 

Option: C

Explanation :


28:  

The change in TR resulting from the sale of one unit more of output, means

A.

AR from a given output

B.

MR from a given output

C.

MR from a given input

D.

MR from MC

 
 

Option: B

Explanation :


29:  

Price effect in indifference curve analysis arises

A.

When the consumer becomes either better off or worse off because price change is not compensated by income change.

B.

When the consumer is better off due to a change in income and price

C.

When income and price change

D.

None of the above

 
 

Option: A

Explanation :


30:  

Marginal revenue will be positive if elasticity of demand is

A.

Equal to one

B.

More than one

C.

Less than one

D.

Equal to zero

 
 

Option: B

Explanation :




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