The degree of monopoly power can be measured by the formula
| A. | P – MC/P |
| B. | MR/AR - MR |
| C. | AR/AR – MR |
| D. | AR – MR/MR |
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Option: A Explanation : Click on Discuss to view users comments. |
The supply curve for the short-run competitive firm is the same as
| A. | Average variable cost curve |
| B. | Marginal cost curve |
| C. | That part of the MC curve which equals or is greater than AVC |
| D. | Average total cost curve |
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Option: C Explanation : Click on Discuss to view users comments. |
A centralised cartel
| A. | Is illegal in the U.S. |
| B. | Behaves as the multiplant monopolist if it wants to minimise the total cost of production |
| C. | Leads to the monopoly situation |
| D. | All of the above |
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Option: D Explanation : Click on Discuss to view users comments. |
Match the following :
(A) Various combinations of two commodities that a consumer can purchase 1. Indifference map
(B) Various combinations of two commodities that give consumer equal satisfaction 2. Indifference curve
(C) A set of indifference curves 3. Budget line
(D) Point of tangency of a budget line and an indifference curve 4. Consumer's equilibrium
| A. | (A) (B) (C) (D) 2 3 4 1 |
| B. | (A) (B) (C) (D) 4 3 2 1 |
| C. | (A) (B) (C) (D) 1 2 4 3 |
| D. | (A) (B) (C) (D) 3 2 1 4 |
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Option: D Explanation : Click on Discuss to view users comments. |
Other things being equal, a decrease in the quantity supplied to the market at given prices leads to
| A. | A higher price and a contraction of demand |
| B. | A lower price and a contraction of demand |
| C. | A higher price and an expansion of demand |
| D. | A lower price and an expansion of demand |
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Option: A Explanation : Click on Discuss to view users comments. |
