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4

In cournot model, during the process of adjustment, the number of firms:

A. Donot change

B. Change

C. Both a and b

D. None of the above

Correct Answer :

A. Donot change


Related Questions

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4

In short-run, in monopolistic competition, a firm earns:

A. Normal profits

B. Abnormal profits

C. No profits

D. All of the above

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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

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4

The firm is at equilibrium where:

A. Output is maximum

B. Profit is maximum

C. Revenues are maximum

D. Profit is minimum

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4

In cournot model, each firm expects a reaction from his rival but the expected reaction is not:

A. important

B. materialized

C. accepted

D. rejected

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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

Identify the factor, which generally keeps the price elasticity of demand for a commodity low:

A. Variety of uses for that commodity

B. Its low price

C. Close substitutes for that commodity

D. High proportion of the consumers income spent on it

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4

In the case of a giffen good, the income effect:

A. Is equal to the substitution effect

B. More than offsets the substitution effect

C. Reinforces the substitution effect

D. Only partially offsets the substitution effect

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4

Which of the following curves is a rectangular hyperbola?

A. ATC

B. AVC

C. AFC

D. None of the above

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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

The Strategy of Economic Development is the work of:

A. S.Kuznets

B. H.Liebenstein

C. A.O.Hirshman

D. Alfred Marshal

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4

Price elasticity of demand can be measured in the following way:

A. Percentage change in quantity demanded of a commodity divided by percentage change in price of that commodity

B. Change in quantity demanded of a commodity divided by change in price of that commodity

C. Percentage change in price of a commodity divided by percentage change in quantity demanded of that commodity

D. None of that commodity

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4

The isoquant approach is:

A. Classical approach

B. Keynesian approach

C. Neo-classical approach

D. Modern approach

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4

Extension (expansion) of demand means:

A. More quantity demanded at a lower price

B. More quantity demanded at a higher price

C. More quantity demanded at the same price

D. None of the above

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4

According to Marshal, the Law of Diminishing Marginal Utility:

A. Applies on both money and other commodities

B. Does not apply on money

C. Does not apply on bank money but applies on cash money

D. Applies on all the commodities except on money

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4

All money costs can be regarded as:

A. Social costs

B. Opportunity costs

C. Explicit costs

D. Implicit costs

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4

If a person behaves against the laws of economics then:

A. He should be condemned

B. He may lose his respect from society

C. He should be punished

D. He should not be punished or even criticised

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4

If two households have identical preferences but different incomes then:

A. They must consume the same amounts of all goods

B. The wealthier one will have lower marginal utility for most goods

C. The wealthier one will have higher marginal utility for most goods

D. They will enjoy the same level of utility

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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 ordinary demand curve is also called:

A. Marshallian demand curve

B. Hicksian demand curve

C. Slutsky demand curve

D. All the above

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4

Total utility:

A. Diminishes with increased consumption

B. Reflects the overall level of satisfaction of the consumer

C. Is directly related to the price the consumer is willing to pay for a good or service

D. Is independent of price changes

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4

In a socialist (communist) economy the invisible hand:

A. Guides most resource allocation decisions

B. Operates effectively only in the labor market

C. Operates effectively only in the market for capital

D. Is prevented from operating effectively

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4

Cross-elasticity of demand or cross-price elasticity between two substitutes will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

The elasticity of substitution measures the percentage change in the ratio of inputs when any producer observes the percentage change in:

A. Output cost

B. Output ratio

C. Input prices

D. Input ratio

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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

For the given production function, technical efficiency is defined as:

A. Sets of points relating production function that maximizes output given input (labor) i.e. Q = f(L, K)

B. Sets of points relating production function that produces less output than possible for a given set of input (labor) i.e. Q < f(L, K)

C. Use of imported technology

D. None of the above

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4

The coefficient of the price elasticity of demand is computed as the absolute value of the percentage change in quantity demanded divided by:

A. The change in price

B. The change in supply

C. The percentage change in supply

D. The percentage change in price

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4

The longer the period of time, the elasticity of supply will be:

A. Constant

B. Less elastic

C. More elastic

D. Perfectly elastic

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4

If X and Y are close substitutes, a rise in the price of X will lead to:

A. Increase in demand for Y

B. Decrease in demand for Y

C. Decrease in demand for both X and Y

D. No change in demand for Y

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4

Under the perfect competition, the transportation cost:

A. Is considered to be negligible and thus ignored

B. Is considered to be vital for the calculation of total cost

C. Is charged along with the price of the commodity

D. None of the above

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4

If the commodities X and Y are perfect substitutes then:

A.

B.

C. >

D. None of the above