Short-run cost curves are influenced by
| A. | External and internal economies and diseconomies |
| B. | Law of variable proportions |
| C. | Principle of returns to scale |
| D. | None of these |
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Option: B Explanation : Click on Discuss to view users comments. |
With increasing returns to scale, the equilibrium in a market is incomplete. This is
| A. | Only in the case of perfectly competitive market |
| B. | Only in the case of monopolistic market situations |
| C. | Only in the case of imperfectly competitive market |
| D. | None of the above |
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Option: A Explanation : Click on Discuss to view users comments. |
Under monopoly and imperfect competition, MC is
| A. | Equal to the price |
| B. | Less than the price |
| C. | More than the price |
| D. | Anyone of the above |
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Option: B Explanation : Click on Discuss to view users comments. |
The economic analysis expects the consumer to behave in a manner
| A. | Rational |
| B. | Emotional |
| C. | Irrational |
| D. | Indifferent |
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Option: A Explanation : Click on Discuss to view users comments. |
If the total cost curve is plotted, marginal cost can be illustrated by
| A. | A straight line from the origin to the midpoint of the curve |
| B. | The slope of a tangent to the curve at any given output |
| C. | AU-Shaped curve cutting the total cost curve at its lowest point |
| D. | A straight line cutting the curve at its lowest point |
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Option: B Explanation : Click on Discuss to view users comments. |
