Even in the long run equilibrium, the pure monopolist (as opposed to the perfectly competitive firm) can make abnormal profits because of
A. | Blocked entry |
B. | His low LAC |
C. | High price he charges |
D. | Advertising |
Option: A Explanation : Click on Discuss to view users comments. |
After reaching the saturation point, consumption of additional units of the commodity causes
A. | Total utility and marginal utility both to increase |
B. | Total utility to fall and marginal utility to increase |
C. | Total utility to fall and marginal utility to become negative |
D. | Total utility to become negative and marginal utility to fall |
Option: C Explanation : Click on Discuss to view users comments. |
Economies of Scale means
A. | Reductions in unit cost of production |
B. | Reductions in unit cost of distribution |
C. | Addition to the unit cost of production |
D. | Reduction in the total cost of production |
Option: A Explanation : Click on Discuss to view users comments. |