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4

In finding equilibrium position of a profitmaximizing firm, which technique is most convenient?

A. Total revenue and total cost technique

B. Marginal revenue and marginal cost technique

C. Demand and supply technique

D. None of the above

Correct Answer :

B. Marginal revenue and marginal cost technique


Related Questions

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The greater the percentage of income spent on a commodity:

A. The greater its elasticity is likely to be

B. The weaker its elasticity is likely to be

C. The unchanged its elasticity is likely to be

D. None of the above

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4

In economics, Externality means:

A. An externality is a cost or benefit which is not transmitted through prices

B. An externality is a cost or benefit which is transmitted through prices

C. An externality is a production received through external resources

D. None of the above

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4

In market sharing cartel model, cartel determines the shares of:

A. the individuals

B. industry

C. firms

D. associations

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An income demand curve of an inferior good is:

A. Upward sloping

B. Downward sloping

C. Constant in slope

D. None of the above

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When SAC curve rises, SMC curve lies its:

A. Below

B. Above

C. Equal level

D. None of the above

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A firm enjoys maximum control over the price of its product under:

A. Monopoly

B. Perfect competition

C. Oligopoly

D. Imperfect competition

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Utility is:

A. A subjective concept

B. An ethical concept

C. An objective concept

D. A historical concept

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The act of producing the output from more than one plant is concerned with:

A. Monopoly

B. Multi-plant monopoly

C. Bilateral monopoly

D. Price discrimination

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In case of income effect, the level of consumers satisfaction rises when:

A. Income rises

B. Income falls

C. Sales rises

D. Price falls

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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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Variable costs refer to:

A. Capital cost plus operating costs

B. Capital costs alone

C. Capital costs plus spill-over costs

D. Operating costs alone

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Which of the following is not characteristic of perfect competition?

A. Freedom of entry and exit

B. Each seller is a price taker

C. Perfect information about prices

D. Heterogeneous products

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If the production function is homogeneous, the expansion path will be a straight line through the origin whose slope determines the optimal:

A. L/K ratio

B. K/L ratio

C. P/L ratio

D. P/K ratio

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A monopolist will fix the equilibrium output of his product where the elasticity of his average revenue curve is:

A. Less than one

B. Equal to one

C. Greater than one

D. Less than one

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If the demand curve is inelastic then:

A. It may be nearly vertical

B. Quantity demanded is very sensitive to income

C. Demand is hardly affected by income

D. Close substitutes for the good are abundant

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An indifference curve normally slopes downward from:

A. Left to right

B. Right to left

C. Both of them

D. None of them

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In the case where two commodities are good substitutes then cross elasticity will be:

A. Positive

B. Unitary

C. Negative

D. Infinite

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Who finalized the model of imperfect competition?

A. Ricardo

B. Marshal

C. Chamberlin

D. Mrs. Robinson

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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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Dumping is international discriminating:

A. Monopoly

B. Oligopoly

C. Duopoly

D. None of the above

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The main contribution of Adam Smith is in the field of:

A. Economics of state

B. Wealth of Nations

C. Value and price

D. Theory of demand

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General equilibrium is concerned with simultaneous equilibrium of:

A. Few economic agents

B. All the economic agents

C. Two economic agents

D. Many economic agents

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If the price of product A decreases and in the result the demand for product B increases then we can say that:

A. A and B are substitute goods

B. A and B are complementary goods

C. A is an inferior good

D. B is an inferior good

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At the shut-down point in perfect competition:

A. P = AVC

B. TR =TVC

C. The total losses of the firm equal TFC

D. All of the above

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Two policy variables, product and selling activities in the theory of firm was introduced by:

A. Chamberline

B. Sraffa

C. Carl marx

D. Robinson

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In non-collusive oligopoly firms enter into:

A. Secret agreements

B. No secret agreements

C. Bad habits

D. None of the above

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

A. Negative

B. Positive

C. Infinite

D. Negative infinite

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On a straight line demand curve, elasticity of demand at the midpoint is:

A. Equal to zero

B. Equal to one

C. Equal to infinity

D. More than one

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Liquidity of Preference Theory was introduced by:

A. Alfred Marshal

B. Lord Keynes

C. Karl Marx

D. Prof. Robbins