Any supply curve which is a straight line passing through the origin whatever its slopes will possess
| A. | An elasticity which is less than one |
| B. | An elasticity which is greater than one |
| C. | Unitary elasticity of supply |
| D. | An elasticity which is greater than zero |
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Option: C Explanation : Click on Discuss to view users comments. |
A monopoly producer has
| A. | Control over production but not price |
| B. | Control over production, price and consumers |
| C. | Control neither on production nor on price |
| D. | Control over production as well as price |
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Option: D Explanation : Click on Discuss to view users comments. |
On an indifference map, higher indifference curves show
| A. | Levels of satisfaction among which the consumer is indifferent |
| B. | The optimum level of satisfaction |
| C. | The higher level of utility |
| D. | The same lower level of satisfaction |
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Option: C Explanation : Click on Discuss to view users comments. |
Which of the following is the correct statement?
(1) The slope of the Isoquants represents the MRTS
(2) The MRTS of the inputs x and y = MPx/MPy
(3) The elasticity of substitution between two inputs x and y is proportionate change in the ratio of two inputs divided by proportionate change in the MRTS.
(4) If degree of homogeneity is greater than one, the production function is increasing returns to fixed factor
| A. | 2, 3 and 4 |
| B. | 1, 3 and 4 |
| C. | 1, 2, 3 |
| D. | 1, 2 and 3 |
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Option: D Explanation : Click on Discuss to view users comments. |
