Classical

Managerial Economics - Managerial Economics MCQ

36:  

The lowest point of the TC curve is

A.

The same as the lowest point of AVC curve

B.

The right of the lowest point of the AVC curve

C.

The left of the lowest point of the AVC curve

D.

None of these

 
 

Option: B

Explanation :


37:  

Any straight line supply curve which cuts the X-axis will have

A.

An elasticity less than one but not zero

B.

Unitary elasticity of supply

C.

An elasticity greater than one

D.

Zero elasticity of supply

 
 

Option: A

Explanation :


38:  

When the law of diminishing returns begins to operate the TVC curve begins to

A.

Fall at a decreasing rate

B.

Rise at a decreasing rate

C.

Fall at an increasing rate

D.

Rise at an increasing rate

 
 

Option: D

Explanation :


39:  

MC is given by

A.

The slope of the TC curve but not by slope of the TVC curve

B.

The slope of the TVC curve but not by slope of the TC curve

C.

The slope of the TFC curve

D.

Either the slope of the TVC curve or slope of the TC curve

 
 

Option: B

Explanation :


40:  

In short-run, a firm would remain in business as long as which one of the following of costs is covered?

A.

Fixed costs

B.

Total costs

C.

Variable costs

D.

Constant costs

 
 

Option: C

Explanation :




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