The difference between monopoly equilibrium and competitive equilibrium is
| A. | The MC should rise at the point of equilibrium under perfect competition whereas under monopoly it can rise, fall or remain constant |
| B. | Under perfect competition, the MC = MR whereas under monopolistic conditions this need not be the case |
| C. | There is no difference at all |
| D. | None of the above |
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Option: A Explanation : Click on Discuss to view users comments. |
A decision standard that selects the alternative with the best of the worst possible outcomes is
| A. | sensitivity analysis. |
| B. | game theory. |
| C. | the maximin criterion. |
| D. | the minimax criterion. |
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Option: C Explanation : Click on Discuss to view users comments. |
In the case of a normal good, the income effect
| A. | Partially offsets the substitution effect |
| B. | Completely offsets the substitution effect |
| C. | Is always equal to the substitution effect |
| D. | Reinforces the substitution effect |
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Option: D Explanation : Click on Discuss to view users comments. |
Thomas Malthus believed
| A. | Production cannot keep on increasing |
| B. | The population of a country will always increase |
| C. | Food supplies place a limit to the growth of population |
| D. | Population increase leads to a fall in output |
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Option: C Explanation : Click on Discuss to view users comments. |
