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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

Correct Answer :

C. Not same


The monopolist's marginal revenue from each unit sold does not remain constant as in the case of the perfectly competitive firm. The monopolist faces the downward-sloping market demand curve, so the price that the monopolist can get for each additional unit of output must fall as the monopolist increases its output. Consequently, the monopolist's marginal revenue will also be falling as the monopolist increases its output. Now if we assume here that the monopolist is not a price discriminate then the monopolist's marginal revenue from each additional unit produced will not equal the price that the monopolist charges. In fact, the marginal revenue that the monopolist receives from producing an additional unit of output will always be less than the price that the monopolist can charge for the additional unit.}

Related Questions

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4

A mixed economy is characterized by the coexistence of:

A. Modern and traditional industries

B. Public and private sectors

C. Foreign and domestic investments

D. Commercial and subsistence farming

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4

Economics is a:

A. Exact science

B. Inexact science

C. Pure science

D. All of the above

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4

Who is the author of Problems of Capital Formation in Underdeveloped Countries?

A. R.Nurkse

B. N.Kaldor

C. S.kuznets

D. Alfred Marshal

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4

Under monopolistic competition, the products sold by the firms are:

A. Economic substitutes

B. Technical substitutes

C. Both a and b

D. None of the above

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4

Marginal cost is the cost:

A. Of the last unit of production

B. Of marginal unit

C. Of marginal efficient units

D. Of the average units of production

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4

After reaching the saturation point consumption of additional units of the commodity cause:

A. Total utility to fall and marginal utility to increase

B. Total utility and marginal utility both to increase

C. Total utility to fall and marginal utility to become negative

D. Total utility to become negative and marginal utility to fall

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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

Who is the author of Choice of Technique?

A. K.N.Raj

B. Amartiya Sen

C. A.C.Pigou

D. Alfred Marshal

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4

We can write ordinal utility function as:

A. U = x1 x2

B. U = x1 + x2

C. U = y1 +x1

D. U = x1.x2

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4

The advantage of using indifference curves rather than marginal utilities is:

A. We do not need to attach util values to consumption

B. Consumers can attain higher utility

C. It takes into account how much income the household has

D. We can determine how much of one good the consumer is willing to sacrifice in order to consume one more unit of another

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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

The consumer is in equilibrium at the where:

A. Budget line and indifference curve intersect each other

B. Budget line and indifference curve are tangent to each other

C. Budget line and indifference curve are opposite to each other

D. Budget line and indifference curve are parallel to each other

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4

According to Marshallian approach, utility:

A. Can be added

B. Can be subtracted

C. Can be multiplied

D. Can be divided

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4

Chamberline introduces the concept of:

A. V-shaped selling cost

B. U-shaped selling cost

C. V-shaped purchasing material

D. U-shaped purchasing material

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4

The marshallian demand curve includes:

A. Substitution Effect

B. Income Effect

C. Both substitution and income effect

D. None of them

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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

Classical production function is:

A. Q = f(L)

B. U =f(X)

C. Q =f(K)

D. Q =f(L,K)

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4

If we measure the elasticity of demand with the help of the average and marginal revenue, the formula is:

A. Ed = AR/ (AR- MR)

B. Ed = MR/ (AR-MR)

C. Ed = AR/(MR-AR)

D. Ed = AR/ MR

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4

Increasing returns imply:

A. Constant average cost

B. Diminishing cost per unit of output

C. Optimum use of capital and factor

D. External economies

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4

A market-clearing price:

A. Is a disequilibrium price

B. Is an equilibrium price

C. Means a shortage exists as a market is cleared

D. Must be set by the government

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4

When marginal costs curve cuts average costs curve, average costs are:

A. Maximum

B. Zero

C. Minimum

D. Equal to one

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4

Price is measured in:

A. Physical units

B. Monetary units

C. Constant units

D. Current units

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4

Which of the following has more elastic demand curve?

A. A commodity without substitutes

B. A commodity with substitutes

C. A commodity on which a small fraction of income is spent

D. A commodity the use of which cannot be postponed

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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

Returns to scale is a:

A. Timeless phenomenon

B. Short run phenomenon

C. Long run phenomenon

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

Change in demand (rise and fall 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

Which of the following is assumed to be constant when drawing a demand curve?

A. Consumer tastes

B. Prices of inputs

C. Technology

D. Number of sellers

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4

The reaction curve of a firm is attained by joining the:

A. Isoprofit curve

B. Super profit curve

C. Normal profit curve

D. Indoprofit curve

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4

In real life firms:

A. Loss because of past

B. Learn from past

C. Destroy because of past

D. None of the above