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4

A dominant strategy can best be described as:

A. A strategy taken by a dominant firm

B. A strategy taken by a firm in order to dominate its rivals

C. A strategy that is optimal for a player no matter an opponent does

D. A strategy that leaves every player in a game better off

Correct Answer :

C. A strategy that is optimal for a player no matter an opponent does


Related Questions

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4

Decrease in demand results in:

A. Upward shift in demand curve

B. Downward shift in demand curve

C. Movement on the same demand curve

D. No movement or shift at all

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4

If a firm is producing output at a point where diminishing returns have set in, this means that:

A. Each additional unit of output will be more expensive to produce

B. Each additional unit of output will require increasing amount of inputs

C. Marginal product of the variable factor of production decreases as the quantity increases

D. All of the above

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4

Efficient allocation of resources is achieved to a greater extent under:

A. Monopoly

B. Perfect competition

C. Monopolistic competition

D. Oligopoly

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The behavior of MC curve is determined by the behavior of the:

A. AC curve

B. SC curve

C. TC curve

D. None of the above

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At the shut-down point in perfect competition:

A. P = AVC

B. TR =TVC

C. The total losses of the firm equal TFC

D. All of the above

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4

In Recardian theory of value, the stress has been made on:

A. Marginal cost

B. Production cost

C. Labor cost

D. Supply cost

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If the marginal utility of apples to a consumer exceeds that of bananas then the consumer:

A. Is not in equilibrium

B. Will not buy any banana

C. Will buy some banana but less than he buys of apples

D. Is willing to pay more for apples than bananas

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4

Supply of a commodity refers to:

A. Total stock of a commodity in the market

B. Total production of a commodity during the year

C. Total production plus total stock of a commodity

D. Amount of commodity offered for sale at some price at a particular place and time

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4

Inputs or Factors of production are defined as:

A. Productive resources such as labor and capital equipment that firms use to manufacture goods and services are called inputs or factors of production

B. Unproductive resources that do not take part in production process are called inputs or factors of production

C. Firms own resources are called inputs or factors of production

D. None of the above

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The costs faced by the firm against variable factors are:

A. Variable costs

B. Fixed costs

C. Average costs

D. Marginal costs

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4

A firm enjoys maximum control over the price of its product under:

A. Monopoly

B. Perfect competition

C. Oligopoly

D. Imperfect competition

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4

Economics is a:

A. Exact science

B. Inexact science

C. Pure science

D. All of the above

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Robbins definition of economics was criticised by:

A. Alfred Marshal

B. Adam Smith

C. J.B.Clark

D. Hicks, Longe and Durbin

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4

Whish of the following represents the average revenue curve of a firm?

A. The curve representing the cost per unit of output

B. The demand curve of consumers for the firms product

C. Total receipts realized by the firm

D. All of the above

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4

Which of the following statement is wrong?

A. A utility function refers to a particular individual and reflects the tastes of that individual

B. When the tastes of an individual changes, his utility function changes(shifts)

C. Different individuals usually have different tastes and thus have different utility functions

D. Different individuals have same tastes and thus have the same utility function

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Kinked Demand Curve is consistent with which one of the following market situations?

A. Pure competition

B. Pure monopoly

C. Oligopoly

D. Monopolistic competition

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When the law of demand operates the demand curve:

A. Slopes downward

B. Slopes upward

C. Becomes horizontal

D. Becomes vertical

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A mixed economy is characterized by the coexistence of:

A. Modern and traditional industries

B. Public and private sectors

C. Foreign and domestic investments

D. Commercial and subsistence farming

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According to Robbins, economics is a:

A. Science of wealth

B. Science of national welfare

C. Science of optimality

D. Science of scarcity

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4

The monopolist firm is price setter. The price setter firm is one which:

A. Can influence the market price

B. Cannot influence the market price

C. Can sell at zero price

D. None of the above

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4

Total profits are maximized at the point where:

A. TR equals TC

B. The TR curve and the TC curve intersect such that TR and TC lie at the same point

C. The TR curve and the TC curve are parallel and TC exceeds TR

D. The TR curve and the TC curve are parallel and TR exceeds TC

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4

In first degree price discrimination, monopolist takes away :

A. All of the consumer surplus

B. All of the producer surplus

C. Some part of the consumer surplus

D. None of them

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4

The point where the supply and demand curves intersect on a graph determines:

A. Market price

B. Equilibrium price

C. Long-term price

D. Short-term price

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The amount of income left over for a consumer in equilibrium is :

A. Consumer surplus

B. Zero

C. Two rupees

D. Excess demand

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The income effect means that consumer purchase more when:

A. Price falls

B. Price increases

C. Price is unchanged

D. Taste changed

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If the demand curve is inelastic then:

A. It may be nearly vertical

B. Quantity demanded is very sensitive to income

C. Demand is hardly affected by income

D. Close substitutes for the good are abundant

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In cournot model firms:

A. Cannot make price adjustments

B. Can make price adjustments

C. Can adjust number of customers

D. None of the above

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If the demand for good is more elastic and government levied a tax per unit of output, the price per unit for the firm would:

A. Rise by the amount of the tax

B. Rise by more than the amount of the tax

C. Rise by less than the amount of the tax

D. Remain the same

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A monopolist will fix the equilibrium output of his product where the elasticity of his average revenue curve is:

A. Less than one

B. Equal to one

C. Greater than one

D. Less than one

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Which of the following is not a characteristic of a perfectly competitive market?

A. There is perfect information about prices

B. All participants in the market are small relative to the size of the overall market

C. There are many buyers and sellers

D. Buyers and sellers do not know each other