Under monopoly the supply curve is absent because
A. | There is no entry for others |
B. | The monopolist always makes profit |
C. | Equilibrium involves MC = MR and MC < P |
D. | The monopolist controls the supply |
Option: C Explanation : Click on Discuss to view users comments. |
Economists associated with the development of indifference curve analysis are
A. | Hicks and Robbins |
B. | Hicks and Allen |
C. | Marshall and Hicks |
D. | Hicks and Walras |
Option: C Explanation : Click on Discuss to view users comments. |
When the market supply curve for a commodity is negatively sloped, we have a case of
A. | The stable equilibrium |
B. | Partial equilibrium |
C. | The general equilibrium |
D. | None of the above, unless additional information is given |
Option: D Explanation : Click on Discuss to view users comments. |
Pure monopoly exists
A. | When there is a single producer with close substitutes |
B. | When there is a single producer without any close substitutes |
C. | When there is a single producer |
D. | When a few producers control the industry |
Option: B Explanation : Click on Discuss to view users comments. |
The substitution effect works to encourage a consumer to purchase more of a product when the price of that goods is falling because
A. | Other products are now less expensive than before |
B. | The consumer's real income has decreased |
C. | The product is now relatively less expensive than before |
D. | The consumer's real income has increased |
Option: C Explanation : Click on Discuss to view users comments. |