A circumstance in which it might pay a monopolist to cut the price of his product is where
A. | MC is falling |
B. | MR is greater than MC |
C. | His advertising costs are increasing |
D. | Average costs seem about to fall |
Option: A Explanation : Click on Discuss to view users comments. |
From the resource allocation view point, perfect competition is preferable because
A. | There is no restriction on entry and exit of firms |
B. | There is a whole variety of output produced |
C. | The firms operate at excess capacity levels |
D. | There is no idle capacity |
Option: D Explanation : Click on Discuss to view users comments. |
Put into chronological order on the basis of development:
1. Law of demand
2. Law of indifference
3. Law of diminishing marginal utility
4. Revealed preference curve
5. Indifference curve
A. | 1 3 4 2 5 |
B. | 1 5 3 4 2 |
C. | 1 3 2 5 4 |
D. | 1 2 3 4 5 |
Option: C Explanation : Click on Discuss to view users comments. |
The falling part of a TU curve shows
A. | Zero marginal utility |
B. | Decreasing marginal utility |
C. | Increasing marginal utility |
D. | Negative marginal utility |
Option: D Explanation : Click on Discuss to view users comments. |
Given the cost conditions
A. | Monopoly output will be higher and prices lower than under pure competition |
B. | Monopoly output will be lower and price higher than under pure competition |
C. | Monopoly output and price will be higher than under pure competition |
D. | Monopoly output and price will be lower than under pure competition |
Option: B Explanation : Click on Discuss to view users comments. |