Classical

Managerial Economics - Managerial Economics MCQ

41:  

Under monopoly the supply curve is absent because

A.

There is no entry for others

B.

The monopolist always makes profit

C.

Equilibrium involves MC = MR and MC < P

D.

The monopolist controls the supply

 
 

Option: C

Explanation :


42:  

Economists associated with the development of indifference curve analysis are

A.

Hicks and Robbins

B.

Hicks and Allen

C.

Marshall and Hicks

D.

Hicks and Walras

 
 

Option: C

Explanation :


43:  

When the market supply curve for a commodity is negatively sloped, we have a case of

A.

The stable equilibrium

B.

Partial equilibrium

C.

The general equilibrium

D.

None of the above, unless additional information is given

 
 

Option: D

Explanation :


44:  

Pure monopoly exists

A.

When there is a single producer with close substitutes

B.

When there is a single producer without any close substitutes

C.

When there is a single producer

D.

When a few producers control the industry

 
 

Option: B

Explanation :


45:  

The substitution effect works to encourage a consumer to purchase more of a product when the price of that goods is falling because

A.

Other products are now less expensive than before

B.

The consumer's real income has decreased

C.

The product is now relatively less expensive than before

D.

The consumer's real income has increased

 
 

Option: C

Explanation :




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