The Revealed Preference Theory is based on
A. | Introspection |
B. | Utility and demand |
C. | The assumption of indifference |
D. | Observed consumer behaviour |
Option: D Explanation : Click on Discuss to view users comments. |
One would expect a firm to close down rather than continue producing in the short-period if
A. | Variable costs were to fall below fixed costs |
B. | Total revenue were less than total variable cost |
C. | Total revenue were more than total variable cost |
D. | Variable costs were to rise above fixed costs |
Option: B Explanation : Click on Discuss to view users comments. |
Marginal Utility (MU) curve is always
A. | Parallel to X-axis |
B. | Falling |
C. | Rising |
D. | Parallel to Y-axis |
Option: B Explanation : Click on Discuss to view users comments. |
The Law of Diminishing Returns depends on the assumption that
A. | Land is the factor kept constant |
B. | The state of technical knowledge is unchanged |
C. | Total output is constant |
D. | Average output declines faster than marginal output |
Option: B Explanation : Click on Discuss to view users comments. |
MRn = TRn - TRn_1 is the algebraic expression of
A. | Information is insufficient |
B. | Marginal Revenue, the change in total revenue when there is a change in quantity sold of the product. |
C. | The addition to TR earned by selling n units of product instead of (n-1) units |
D. | None of the above |
Option: B Explanation : Click on Discuss to view users comments. |