A comparison of monopoly and cartel reveals that
A. | Like monopoly, cartel also maximizes revenue of its members |
B. | Monopoly and cartel differ in the manner they reach their pricing decisions |
C. | Unlike monopoly, all members of cartel maximize |
D. | None of the above |
Option: C Explanation : Click on Discuss to view users comments. |
If a straight line demand curve is tangent to a curvilinear demand curve, the elasticity of the two demand curves at the points of tangency is
A. | The same |
B. | Can be the same or different |
C. | Different |
D. | Depends on the location of the point of tangency |
Option: A Explanation : Click on Discuss to view users comments. |
If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is
A. | Equal to 1 |
B. | Greater than 1 |
C. | Less than 1 |
D. | Zero |
Option: C Explanation : Click on Discuss to view users comments. |
Even if costs increase, the MC remains unaffected, the cost is
A. | Total fixed cost |
B. | Fixed cost |
C. | Variable cost |
D. | Average cost |
Option: B Explanation : Click on Discuss to view users comments. |
Clark-Wicksteed product exhaustion theorem says that
A. | Given a linearly homogenous production function, the product is exhausted |
B. | Total product is exhausted only under laissez-faire |
C. | In long-run competitive equilibrium, the total product will be exhausted in rewarding the factors |
D. | Total product is exhausted only under conditions of monopoly |
Option: A Explanation : Click on Discuss to view users comments. |