Classical

Managerial Economics - Managerial Economics MCQ

31:  

The degree of monopoly power can be measured by the formula

A.

P – MC/P

B.

MR/AR - MR

C.

AR/AR – MR

D.

AR – MR/MR

 
 

Option: A

Explanation :


32:  

The supply curve for the short-run competitive firm is the same as

A.

Average variable cost curve

B.

Marginal cost curve

C.

That part of the MC curve which equals or is greater than AVC

D.

Average total cost curve

 
 

Option: C

Explanation :


33:  

A centralised cartel

A.

Is illegal in the U.S.

B.

Behaves as the multiplant monopolist if it wants to minimise the total cost of production

C.

Leads to the monopoly situation

D.

All of the above

 
 

Option: D

Explanation :


34:  

Match the following :

(A) Various combinations of two commodities that a consumer can purchase   1. Indifference map

(B) Various combinations of two commodities that give consumer equal satisfaction   2. Indifference curve

(C) A set of indifference curves   3. Budget line

(D) Point of tangency of a budget line and an indifference curve   4. Consumer's equilibrium

A.

(A) (B) (C) (D)

2    3    4    1

B.

(A) (B) (C) (D)

4    3    2    1

C.

(A) (B) (C) (D)

1    2    4    3

D.

(A) (B) (C) (D)

3    2    1    4

 
 

Option: D

Explanation :


35:  

Other things being equal, a decrease in the quantity supplied to the market at given prices leads to

A.

A higher price and a contraction of demand

B.

A lower price and a contraction of demand

C.

A higher price and an expansion of demand

D.

A lower price and an expansion of demand

 
 

Option: A

Explanation :




Suggest an improvement