Income elasticity of demand will be zero when a given change in income brings about
| A. | The same proportionate change in demand |
| B. | A more than proportionate change in quantity demanded |
| C. | A less than proportionate change in quantity demanded |
| D. | No change in demand |
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Option: D Explanation : Click on Discuss to view users comments. |
Increasing returns to scale can be explained in terms of
| A. | Optimum factor proportions |
| B. | Fixed scale of plant |
| C. | External and internal economies |
| D. | Labour productivity |
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Option: C Explanation : Click on Discuss to view users comments. |
If AR curve is a falling straight line, MR curve will lie below it in such a way that any line drawn from a point from Y-axis parallel to X-axis to meet the AR curve is intersected by the MR curve
| A. | Mid-way |
| B. | Less than half-way |
| C. | More than half-way |
| D. | Anywhere |
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Option: A Explanation : Click on Discuss to view users comments. |
When the average product is at its maximum, the equality can be reached between
| A. | The marginal product and primary product |
| B. | The marginal product and average product |
| C. | The marginal product and total product |
| D. | The marginal product and final product |
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Option: B Explanation : Click on Discuss to view users comments. |
Price discrimination is possible
| A. | When elasticities cannot be known |
| B. | When elasticities of demand are different in different markets at the ruling price |
| C. | When elasticities of demand in different markets are the same at the ruling price |
| D. | None of these |
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Option: B Explanation : Click on Discuss to view users comments. |
