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What is the correct answer?

4

A producer attains the least cost combination when the relation between Marginal Rate of Technical Substitution (MRTS) and price (P) of the factors x and y is:

A.

B.

C.

D.

Correct Answer :

B.


Related Questions

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4

When sales tax is imposed on monopolist, its:

A. Output is effected

B. Equilibrium is effected

C. Input is effected

D. Reputation is effected

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4

Under perfect competition, a firm will be in equilibrium if:

A. MC = MR

B. MC cuts the MR from below

C. MC rises when it cuts the MR

D. All the above three conditions are fulfilled

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4

The long run average cost curve is the envelope of:

A. SACs

B. LACs

C. SMCs

D. LMCs

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4

In sweezy model (kinked demand curve model), the overall increase in costs of production:

A. Do not effect equilibrium

B. Affect equilibrium

C. Both a and b

D. None of the above

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4

The combination of labor and capital where the cost of a given output is minimized is known as:

A. Least cost factor combination

B. Optimum factor combination

C. Both a and b

D. None of them

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4

The giffen paradox is an exception to law of:

A. Supply

B. Demand

C. Production

D. Consumption

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4

The short run cost curve is U shaped because of:

A. The operation of increasing cost

B. The existence of fixed cost

C. The existence of variable cost

D. All of the above

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4

In Bertrand model, the entry of new firms is:

A. banned

B. allowed

C. partially allowed

D. none of the above

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4

A vertical supply curve parallel to the price axis implies that the elasticity of supply is:

A. Zero

B. Infinite

C. Equal to one

D. Greater than zero but less than infinite

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4

If the commodity is inferior then Income Effect (I.E) is:

A. Negative

B. Positive

C. Zero

D. Infinite

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4

A budget line shows:

A. Price of commodity X in terms of Y

B. Price of commodity Y in term of X

C. Income of the consumer

D. All of the above

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4

If at the unchanged price, the demand for a commodity goes up, or the quantity demanded remains the same when its price goes up, it is called:

A. Contraction of demand

B. Decrease in demand

C. Increase in demand

D. Extension of demand

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4

In monopolistic competition, the individual demand curve is also known as:

A. Planned products curve

B. Planned material curve

C. Planned costs curve

D. Planned sales curve

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4

If the slope of the isoquant is equal to the slope of isocost, then isoquant is:

A. Concave to the origin

B. Convex to the origin

C. Tangent to the origin

D. None of the above

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4

Excess capacity is concerned with the:

A. V-shaped traditional cost curves

B. S-shaped traditional cost curves

C. Modern cost curves

D. U-shaped traditional cost curves

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4

Which of the following is not a feature of isoproduct curves?

A. Are downward sloping to the right

B. Show different input combination producing the same output

C. Intersect each other

D. Are convex to the origin

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4

Under which of the following forms of the market structure does a firm have no control over the price of its product?

A. Monopoly

B. Monopolistic competition

C. Oligopoly

D. Perfect competition

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4

The production possibility curve (PPC) is concerned with:

A. Resources of the economy

B. Interests of the economy

C. Limitations of the economy

D. Qualities of the economy

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4

At the point where a straight line demand curve meets the quantity axis (x-axis), elasticity of demand is:

A. Equal to zero

B. Equal to one

C. Equal to infinite

D. More than one

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4

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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4

A good tends to have relatively inelastic demand, if:

A. Close substitutes are available

B. It has a high price

C. It is a luxury

D. It has no very close substitutes

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4

In cournot model, firms face:

A. Negatively sloped demand curve

B. Positively sloped demand curve

C. Horizontal demand curve

D. Vertical demand curve

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4

Rotten eggs are:

A. Free goods

B. Economic goods

C. Luxury goods

D. None of the above

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4

Ceteris paribus clause in the law of demand means:

A. The price of substitute does not change

B. The taste of the consumer does not change

C. The income of the consumer does not change

D. All of the above

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4

In economist the term invisible hand is refers to:

A. Hand of God

B. Market self regulating system

C. Hands of invisible people

D. Regulations of government

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4

A demand curve which is horizontal and parallel to x-axis represents:

A. Infinitely elastic demand

B. Infinitely inelastic demand

C. Relatively elastic demand

D. Relatively inelastic demand

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4

If a monopolist is producing under decreasing cost conditions, increase in demand is beneficial to the society because:

A. Consumers get better quality goods

B. Cost of production falls and hence price will follow

C. Goods will be sold in many markets

D. None of the above

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4

If both demand and supply were to increase then:

A. Quantity exchanged would fall and price would rise

B. Quantity exchanged and price would both fall

C. Quantity exchanged would rise and price might rise or fall

D. Quantity exchanged and price would both rise

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4

Increase in demand occurs when:

A. The price falls and the demand also falls down

B. The price increases but demand falls down

C. The price increases the demand remains constant and when the price remains constant the demand goes up

D. The price remains constant but demand falls

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4

In case of monopoly, the price charged against the additional unit is:

A. Not different

B. Same

C. Not same

D. Zero