The cost assigned to factors of production that the firm neither hires nor purchases is called
A. | Opportunity cost |
B. | Social cost |
C. | Economic cost |
D. | Imputed cost |
Option: D Explanation : Click on Discuss to view users comments. |
A consumer's demand curve can be obtained from
A. | Engel's curve |
B. | Income-consumption curve |
C. | Price-consumption curve |
D. | None of these |
Option: C Explanation : Click on Discuss to view users comments. |
The prime cost may be considered as
A. | Sunk cost |
B. | Direct cost |
C. | Variable cost |
D. | Fixed cost |
Option: D Explanation : Click on Discuss to view users comments. |
The supply function, would shoot downward and to the right if the MC of all the firms in a perfectly competitive industry were to
A. | No change |
B. | Increase |
C. | Decrease |
D. | None of these |
Option: B Explanation : Click on Discuss to view users comments. |
The competitive equilibrium leads to
A. | Firms producing at a cost higher than the minimum. |
B. | The firms producing at their minimum costs |
C. | The firm producing with excess capacity |
D. | Some firms producing under decreasing costs and others under increasing costs. |
Option: A Explanation : Click on Discuss to view users comments. |