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4

If the demand curve is vertical then its slope is:

A. Infinite

B. Zero

C. Equal to one

D. None of the

Correct Answer :

B. Zero


The slope of vertical demand curve is zero b/c here change in quantity demanded is zero and change in price is some positive value so dQ/dP = 0.It is also known as perfectly inelastic demand curve)

Related Questions

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4

The cost that a firm incurs in purchasing or hiring any factor of production is referred to as:

A. Explicit cost

B. Implicit cost

C. Variable cost

D. Fixed cost

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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

7.In an economy based on the price system the decision on what shall be produced is made by:

A. Government

B. Consumer

C. Producer

D. Stock holder

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4

The maximization of output subject to cost requires equilibrium at the:

A. Lowest isoquant

B. Lowest isocost line

C. Highest isoquant

D. Highest isocost line

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4

Abstinence or Waiting theory of Interest was presented by:

A. Lord Keynes

B. J.S.Mill

C. Alfred Marshal

D. Prof.Senior

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4

The concept of period refers to:

A. A specific duration of time

B. A varying duration of time

C. A duration of time which permits necessary adjustments

D. A period with calculated intervals

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4

Airlines that try to lower fares in order to increase revenues believe that demand for airline services is:

A. Price elastic

B. Price inelastic

C. Income elastic

D. Income inelastic

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4

Because of selling costs, the demand curve of a firm shifts:

A. Downward

B. Upward

C. Horizontal

D. Straight line

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4

In the short-run, in which one of the following situations would a competitive seller close down (shut-down)?

A. When he cannot produce at an economic profit

B. When price falls short of average variable cost at every level of output

C. When price falls short of average fixed cost at every level of output

D. When price falls short of average total cost at every level of output

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4

The reserve capacity in administration is advocated on the ground that demand for a product will:

A. Decrease in the future

B. Increase in the future

C. Remain constant

D. None of the above

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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

The main objective of the firm is to:

A. Face losses

B. Avoid losses

C. Bear losses

D. Make economic decisions

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4

One common definition of a luxury good is a good with income elasticity:

A. Greater than one

B. Equal to one

C. Less than one but more than zero

D. None of the above

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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

If the demand curve is horizontal then its slope is:

A. Infinite

B. Zero

C. Equal to one

D. None of the above

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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

The equilibrium conditions, MC = MR = AR = AC, will happen:

A. In the short-run under perfect competition

B. In the long-run under perfect competition

C. In the short-run under monopolistic competition

D. In the long-run under monopolistic competition

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4

In case of budget line, we get pairs of two goods where consumers income is:

A. Fully spent

B. Half spent

C. Partially spent

D. Correctly spent

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4

In case of monopoly, when total revenue is maximum:

A. MR is positive

B. MR falls

C. MR rises

D. MR is zero

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4

The relationship between price effect, income effect and substitution effect is:

A. P.E = S.E + I.E

B. S.E = P.E +I.E

C. I.E = P.E +S.E

D. S.E = P.E +2I.E

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4

If the supply curve is not a straight line but curvilinear, the elasticity on all points of the supply curve is:

A. Equal

B. Different

C. Zero

D. Infinity

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4

To calculate the Economic Profit we must deduct which of the following cost from our total revenues?

A. Opportunity cost

B. Direct cost

C. Rent cost

D. Wage cost

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4

A firm is a sum of persons who convert:

A. Goods into services

B. Output into inputs

C. Inputs into outputs

D. None of the above

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4

According to Cobb-Douglas, in production function the marginal product of labor is:

A.

B.

C.

D.

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4

Which is not a central problem of an economy?

A. What to produce

B. How to produce

C. How to maximize private profit

D. For whom to produce

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4

When elasticity of demand is greater than one (e >1), then following the formula MR=P[1-1/e], the MR will:

A. Positive

B. Negative

C. Zero

D. None of the above

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4

In Nash Equilibrium:

A. Each player has a dominant strategy

B. No players have a dominant strategy

C. At least one player has a dominant strategy

D. Players may or may not have dominant strategies

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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

Each firm in cournot model can:

A. not ignor the activities of the rival

B. ignor the activities of the rival

C. both a and b

D. none of the above

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4

To attain maximum profits during short-run a firm should produce the output that will:

A. Yield maximum total revenue

B. Minimize marginal cost

C. Maximize marginal cost

D. Equate marginal revenue with marginal cost