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4

In cournot model, each firm makes decision regarding:

A. Price

B. Output

C. Cost

D. Advertisement

Correct Answer :

B. Output


Related Questions

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4

If the commodity is normal then the Income Effect (I.E) and the Substitution Effect (S.E):

A. Both move together and reinforce each other

B. One moves and the other remains constant

C. Move in the opposite direction and neutralize each other

D. Both remain constant

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4

The law of variable proportions comes into being when:

A. All factors are variable

B. There is a fixed factor and variable factor

C. All factors are non-variable

D. None of the above

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4

Contracts made by firms in cooperative games are:

A. Biased

B. Binding

C. Not binding

D. Conditional

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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

The average cost curve is a geometrical illustration of:

A. Hydraulic function

B. Cubic function

C. Pentagonic function

D. Quadratic function

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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

According to Saint Thomas Aquinas value is determined by God, but prices by:

A. Consumers

B. Employees

C. People

D. Labor

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4

We can find total utility by:

A. Multiplying the number of unit by its marginal utility

B. Adding up the marginal utility of all units

C. Multiplying price by number of units

D. None of the above

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4

At high prices, demand is likely to be:

A. More elastic

B. Less elastic

C. Unit elastic

D. Perfectly inelastic

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4

The monopolist firm is price setter. The price setter firm is one which:

A. Can influence the market price

B. Cannot influence the market price

C. Can sell at zero price

D. None of the above

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4

An economic theory is :

A. An axiom

B. A proposition

C. A hypothesis

D. A tested hypothesis

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4

In monopoly, when average revenue curve falls:

A. MR constant

B. MR rises

C. MR falls

D. MR is zero

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4

Perfect competition assumes:

A. All buyers and sellers have perfect knowledge of the market

B. Freedom of entry of firms into the industry

C. Homogeneous product

D. All of the above

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4

Who first formulated the Marginal Productivity Theory of Distribution?

A. J.B.Clark

B. L.Euler

C. J.A.Schumpeter

D. Alfred Marshal

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4

Stable cobweb model is a:

A. Simple model

B. Dynamic model

C. Both of them

D. None of them

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4

The ordinal approach was presented by:

A. Marshal

B. J.R.Hicks

C. Adam smith

D. Rostow

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4

Marginal cost is always:

A. Less than the average cost

B. More than the average cost

C. Equal to the average cost at minimum point

D. Never equal to the average cost

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4

The behavior of MC curve is determined by the behavior of the:

A. AC curve

B. SC curve

C. TC curve

D. None of the above

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4

Scarcity is:

A. A relative term

B. An economic term

C. A dynamic term

D. As a whole term

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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

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

The name of the system of direct exchange is:

A. Price system

B. Barter system

C. Islamic economic system

D. Socialistic system

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4

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

A. Increase at a constant rate

B. Decrease at a constant rate

C. Increase at a variable rate

D. Decrease at a variable rate

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4

If demand is elastic and supply is inelastic then the burden of a tax on the good will be:

A. Borne mostly by producers

B. Borne mostly by consumers

C. Borne mostly by government

D. Shared equally by producers and consumers

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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

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4

Production indifference curve (isoquant) is a curve which shows:

A. Equal level of output

B. Unequal level of outputs

C. Equal level of inputs

D. Unequal level of inputs

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4

The slope of the iso-cost line (budget line) is determined by:

A. Pricing of two factors

B. Productivity of the two factors

C. Degree of substitutability of two factors

D. None of the above

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4

A firm in a position of equilibrium is supposed to be maximizing:

A. Output

B. Sales

C. Profits

D. None of the above

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4

In economic term water is a:

A. Free good

B. Economic good

C. Both of the above

D. None of the above

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4

A monopolist is:

A. Price winner

B. Price searcher

C. Price taker

D. Price leaver