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4

A monopoly producer has:

A. Control over production but not over price

B. Control neither on production nor on price

C. Control over consumers

D. Control over production as well as over price

Correct Answer :

D. Control over production as well as over price


Related Questions

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4

The income consumption curve (ICC) is the locus of points of consumer equilibrium resulting:

A. Only when the price of commodity X changes

B. Only when the price of commodity Y changes

C. Only when the consumers income is varied

D. None of the above

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In discriminating monopoly (price discrimination), the cost of production in two markets are:

A. Different

B. Same

C. Zero

D. None of the above

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The concept of industry in monopolistic competition has been replaced by:

A. Firm

B. Product group

C. Producers

D. Shopkeepers

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4

Rational economic behavior on the part of the consumer means that he will:

A. Save as much of his income as possible

B. Spend as much of his income as possible

C. Buy everything at the lowest possible price

D. Make wise choices among available economic goods

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4

In the case of an inferior good, the income effect:

A. Partially offsets the substitution effect

B. Reinforces the substitution effect

C. Is equal to the substitution effect

D. More than offsets the substitution effect

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4

The falling part of total Utility (TU) curve shows:

A. Increasing marginal utility

B. Decreasing marginal utility

C. Zero marginal utility

D. Negative marginal utility

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4

When price decreases and with it the total outlay on a commodity also decreases, it is a case of:

A. Perfect elasticity (infinitely elastic)

B. Relative elasticity (greater than one elasticity)

C. Perfect inelasticity (zero elasticity)

D. Relative inelasticity (less than one elasticity)

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4

In perfect cartel, the:

A. Perfect competition price is charged

B. Monopoly price is charged

C. Monopoly price is not charged

D. None of the above

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In the immediate run:

A. Supply curves are inelastic

B. Supply curves are perfectly elastic

C. Demand curves are elastic

D. Supply curves are elastic

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4

In price leadership, like leader, the follower firm may:

A. also maximize its profits

B. not maximize its profits

C. maximize its costs

D. none of the above

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4

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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4

In dominant price leadership model, the small firms are like:

A. monopolistic firms

B. monopoly

C. competitive firms

D. none of the above

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The optimal strategy for a player is termed as:

A. Recessive strategy

B. Dormant strategy

C. Dominant strategy

D. Hidden strategy

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4

The normal long-run average cost curve is influenced by the:

A. Principle of diminishing returns

B. Economies and diseconomies of large scale production

C. Principle of constant return to scale

D. All of the above

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4

Average Revenue means:

A. Per unit revenue received from all the units sold by the producer

B. Revenue of the units having average size

C. Total number of units× Revenue per unit

D. Total revenue × Number of units sold

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4

The Law of Proportionality is another name of:

A. The law of diminishing marginal utility

B. The law of demand

C. The Law of Diminishing Returns

D. The law of supply

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4

Change in quantity demanded (expansion and contraction of demand) is:

A. Due to change in price while other factors remain constant

B. Due to change in factors other than price

C. Both a and b

D. None of the above

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4

In an indifference curve diagram, when the price of a product increases, the decline in quantity demanded that results if consumers utility or welfare is kept constant is referred to as the:

A. Utility effect

B. Budget line effect

C. Substitution effect

D. Income effect

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In cournot model, firms make decisions separately regarding:

A. output

B. input

C. price

D. advertisement

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General equilibrium is concerned with simultaneous equilibrium of:

A. Few economic agents

B. All the economic agents

C. Two economic agents

D. Many economic agents

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When total revenue is maximum in monopoly, elasticity of demand is:

A. E =1

B. E >1

C. E <1

D. E =0

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In the case of substitutes, the cross demand curve slopes

A. Downwards to the right

B. Upwards to the right

C. Backwards to the right

D. Inwards at the bottom

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The kinked demand curve comes into being where:

A. Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other

B. Proportional demand curve (PDC) and individual demand curve (IDC) are parallel to each other

C. Proportional demand curve (PDC) and individual demand curve (IDC) repel each other

D. None of the above

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4

Which is the other name that is given to the average revenue curve?

A. Profit curve

B. Demand curve

C. Average cost curve

D. Indifference curve

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Cournot equilibrium is attained where two reaction curves:

A. Repel each other

B. Represent each other

C. Intersect each other

D. None of the above

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Which of the following is an implicit cost of production?

A. Wages of the labor

B. Charges of electricity

C. Interest on owned money capital

D. Payment for raw materials

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If there are many firms producing similar but differentiated products, the competition is generally said to be:

A. Oligopoly

B. Pure competition

C. Perfect competition

D. Monopolistic competition

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The difference between the average total cost and average variable cost as output increases will:

A. Increases

B. Remains the same

C. Diminishes

D. Zero

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Money spent by a firm on the purchase of capital equipment is:

A. Fixed cost

B. Variable cost

C. Both fixed and variable costs

D. None of the above

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Consumers Surplus can also be defined as:

A. Extra price benefits

B. Shortage of quantity

C. Surplus of quantity

D. Difference between actual price and potential price