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4

By increasing the price of its products above those of its competitors, a perfectly competitive seller:

A. Can sell more

B. Reduces its revenues

C. Can sell nothing

D. Increases its revenues

Correct Answer :

C. Can sell nothing


Related Questions

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4

Because the price elasticity of demand for OPEC oil is approximately .08, in order to increase revenues OPEC should:

A. Lower price in order to increase revenues

B. Lower price in order to decrease the amount of oil sold

C. Rise price in order to increase the amount of oil sold

D. Raise price in order to increase revenues

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4

If the production increases under decreasing returns to scale, the cost will:

A. Increase at decreasing rate

B. Increase at constant rate

C. Decrease at increasing rate

D. Increase at increasing rate

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4

According to Leontief technology, there:

A. Is only one technique of production

B. Are few techniques of production

C. Are many techniques of production

D. Are two techniques of production

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4

The slope of budget line shows the price ratios of:

A. Many goods

B. Few goods

C. Two goods

D. Three goods

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4

The main contribution of Malthus is in the field of:

A. Consumption expenditure

B. Theory of population

C. Division of labor

D. Theory of demand

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4

Average cost means:

A. Cost of the average units

B. Cost of the last units of average

C. Cost of the unit of production

D. Total cost marginal cost

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4

With an increase in income, consumer is expected to buy more of:

A. An inferior good

B. A giffen good

C. A normal(or superior) good

D. None of the above

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4

The game theory was basically presented by:

A. Ricardo

B. Marshal

C. Neomann and Morgenstern

D. Karl Marx

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4

Variable costs refer to:

A. Capital cost plus operating costs

B. Capital costs alone

C. Capital costs plus spill-over costs

D. Operating costs alone

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4

A price is a ratio of exchange between:

A. Money and exchange

B. Quantity and production

C. Production and consumption

D. Money and quantity

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4

An inferior good/ commodity is inferior for:

A. Every consumer

B. Most consumers

C. All consumers

D. Some consumers and not for others

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4

In the long-run competitive equilibrium, the theory predicts that:

A. TC = TR and MC = MR

B. Firms operate at a minimum average total cost

C. There is no incentive for entry or exit of firms

D. All these conditions exist

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4

The game theory is concerned with:

A. Perfect competition

B. Imperfect competition

C. Price discrimination

D. Duopoly and oligopoly

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4

The shape of the TC curve is:

A. U

B. V

C. P

D. S(inverted)

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4

Economies of large-scale production:

A. Lead to greater specialization

B. Offsets the effects of the law the law of comparative advantage

C. Lead to greater diversification of individual production

D. Cause firms to use more capital and less labor

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4

Which of the following formula determine the income elasticity of demand?:

A. Proportionate change in demand Proportionate change in price

B. Proportional change in the purchase of Y Proportional change in the price of X

C. Proportionate change in demand Proportionate change in income

D. Proportionate change in demand Proportionate change in price

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4

Demand is elastic when the coefficient of elasticity is:

A. greater than zero

B. less than one

C. greater than one

D. less than one

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4

Which of the following theories of trade cycle was presented by William Jevons?

A. Sunspot Theory

B. Monetary Theory

C. Saving-Investment Theory

D. Innovation Theory

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4

According to critics, the assumption of costless production is:

A. true

B. not true

C. reliable

D. deniable

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4

If under perfect competition, in the short period, price does not cover the average cost completely, the firm will even then stay in the market as long as:

A. The average fixed cost is covered

B. The average variable cost is covered

C. Some profit is earned

D. The entrepreneurs enjoy producing

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4

Neutral Technological Progress can be defined as:

A. Technological progress that causes to raise the marginal product of capital and labor in the same proportion

B. Technological progress that causes the marginal product of capital to increase relative to the marginal product of labor

C. Technological progress that causes the marginal product of labor to increase relative to the marginal product of capital

D. None of the above

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4

An increase in the price of the good measured on the horizontal axis causes:

A. The budget line to get steeper

B. The budget line to shift parallel to the right

C. The indifference curve to shift up

D. The budget line to get flatter

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4

As the price of diamond is higher, so it has:

A. Higher marginal valuation for consumer

B. Lower marginal cost for producer

C. Higher marginal cost for producer

D. Both (a) and (c)

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4

Under the law of variable proportions, the average and the marginal product of the variable factor would ultimately:

A. Become equal

B. Decrease

C. Become constant

D. Increase

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4

A monopolist is able to maximize his profit when:

A. His output is maximum

B. He charges a high price

C. His average cost is minimum

D. His marginal revenue is equal to marginal cost

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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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4

For a few products such as insulin for diabetics,:

A. The demand curve can be upward sloping

B. The price elasticity of demand could be zero

C. The price elasticity of demand could be greater than one

D. None of the above

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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

Supply curves are most elastic:

A. In the long-run

B. In the short-run

C. For luxuries

D. In the immediate-run

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4

Which form of market structure is characterized by interdependence in decision-making as between the different competing firms?

A. Oligopoly

B. Perfect competition

C. Imperfect competition

D. None of the above