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4

Conditions of perfect competition ensure:

A. That each firm can influence the price

B. No single firm can influence the price

C. Any single firm can influence the supply condition in the market

D. Any single firm can influence both supply and price in the market

Correct Answer :

B. No single firm can influence the price


Related Questions

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4

The effect of consumer boycotts usually is:

A. A rise in the price of the product

B. A decrease in the demand for the product

C. A decrease in the supply of the product

D. An increase in the quantity supplied of the product

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The situation of single buyer and single seller is called:

A. Monopoly

B. Multi-plant monopolist

C. Bilateral monopoly

D. Price discrimination

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4

Identify the author of The Principles of political Economy and Taxation:

A. Alfred Marshal

B. J.S.Mill

C. David Ricardo

D. A.C.Pigou

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4

The CES production function shows:

A. Decreasing return to scale

B. Increasing return to scale

C. Constant return to scale

D. None of the above

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4

If Marginal Utility (MU) is zero, then total utility is:

A. Maximum

B. Minimum

C. Infinite

D. Not measureable

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If the marginal utility is divided by the price of the commodity then it is called:

A. Real Marginal Utility

B. Gross Marginal Utility

C. Weighted Marginal Utility

D. Money Marginal Utility

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4

Price elasticity of demand is best defines as:

A. Change in the tastes of consumers at different prices

B. The rate of response of demand to a change in supply

C. The change in costs when output is increased by one unit

D. The responsiveness of demand to a change in price

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4

In the case of an inferior commodity, the income-elasticity of demand is:

A. Positive

B. Unitary

C. Negative

D. Infinity

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4

According to Marginalists, the price of any commodity is determined by:

A. Marginal usefulness

B. Marginal cost

C. Both of them

D. None of them

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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

In the short-run, the competitive firm can maximize its profits (or minimize its losses) by:

A. Equating price and marginal revenue

B. Equating price and average total cost

C. Increasing marginal cost and lowering fixed costs

D. Equating marginal cost and marginal revenue

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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

If the supply and demand increases equally, the price will:

A. Rise

B. Fall

C. Remain unchanged

D. Change depending on respective elasticities

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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

Any straight line supply which cuts the x-axis will have:

A. Zero elasticity

B. An elasticity greater than one

C. Unitary elasticity of supply

D. An elasticity less than one

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4

Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw materials

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

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4

The short-run periods in monopolistic competition are:

A. Parallel to each other

B. Dependent upon each other

C. Independent of each other

D. Zero

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4

In dominant strategies I am doing the best, I can no matter:

A. What you do

B. What you are doing

C. What you not do

D. None of them

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4

The slope of indifference curve shows:

A. Income level

B. Satisfaction level

C. Marginal rate of substitution

D. Demand level

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4

In case of short-run, the supply curve of an industry is the horizontal summation of:

A. Marginal cost curves

B. Average cost curves

C. Total cost curves

D. None of the above

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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

Price discrimination is undertaken with the aim of:

A. Increasing sales and maximizing profits

B. Reducing sales and raising prices

C. Minimizing cost and maximizing revenue

D. Serving the markets without earning profits

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4

Price discrimination is possible:

A. When elasticities of demand in different markets are the same at the ruling price

B. When elasticities of demand are different in different markets at the ruling price

C. When elasticities cannot be known

D. When elasticities of demands are zero in different markets at the rulling price

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4

The production process is:

A. Consuming goods and services

B. Transforming inputs into outputs

C. Wasting goods and services

D. Buying goods and services

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Production function shows:

A. Technical relationship between inputs and output

B. Profitability production

C. Relation between MR and MC

D. Relation between AR and AC

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4

The law of demand is most directly a result of:

A. The law of comparative advantage

B. The law of diminishing returns

C. The principle of substitution

D. Economics of large scale production

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In second 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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Under monopolistic competition, in long-run there is:

A. Ban on exit

B. Ban on entry

C. Free entry

D. Free entry and exit

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4

Which one of the following has been the most influential work of F.H.Knight?

A. Freedom and Reform

B. The Green Revolution

C. Economic Integration

D. Risk ,Uncertainty and Profit

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4

If a consumer buys a product that costs Rs.3 and provides an additional 18 units of satisfaction, then for this purchase:

A. Total utility will increase by 6 units

B. The marginal utility per rupee is 6

C. The consumer will buy more because marginal utility is positive

D. The consumer obtained an extra54 units