Home

In modern cost theory, AVC= b1 and MC= b1 in the range of:

A. Excess capacity

B. Reserve capacity

C. Limited capacity

D. None of the above

Correct Answer : B.


In modern theory of cost, in the range of reserve capacity, the MC curve and AVC curve both are equal and same.}

Download Objective type questions of Basics of Economics PDF

Visit our PDF store

Get all objective type questions of Basics of Economics MCQ

Also checkout these categories

Banking MCQ Co-Ordination Compound MCQ Machine Input Mi-set 2 MCQ Neurology MCQ Boats and Streams MCQ Theory of Machines MCQ Linux OS MCQ Microsoft Word MCQ Rearrangement Set 10 MCQ Classifications of Animal Kindom MCQ Phylum - Echinodermata MCQ Workshop Technology MCQ

Please do not use chat terms. Example: avoid using "grt" instead of "great".

Submit
Load More..
You can do it
  1. In the immediate run:
  2. The supply curve would probably shift to the right if:
  3. Contraction of demand means:
  4. Total utility and price are:
  5. Under price discrimination, the buyers must:
  6. When the output of a firm is increasing, its average fixed cost:
  7. According to translog production function, elasticity of substitution is:
  8. The least cost combination of factors x , y and z will generally be the point at which:
  9. In case of monopoly, the price charged against the additional unit is:
  10. Scarcity is:
  11. In monopoly, when average revenue curve falls:
  12. Price leadership is associated with:
  13. From the resource allocation view point, perfect competition is preferable because:
  14. The central problem of economics is:
  15. General Equilibrium deals with the equilibrium of the:
  16. The giffen paradox is an exception to law of:
  17. Suppose income increases by 10% and demand for commodity increases by 5% then the income elasticity…
  18. In measuring price-elasticity:
  19. Which form of market structure is characterized by interdependence in decision-making as between the…
  20. The long run average cost curve is the envelope of:
  21. In perfectly competitive markets, the profit maximization rule can be represented by:
  22. Which of the following goods is most likely to be exchanged in a market of local rather than national…
  23. Which of the following curves is a rectangular hyperbola?
  24. If production increases under increasing returns to scale, the cost will:
  25. If both demand and supply were to increase then:
  26. The main contribution of Adam Smith is in the field of:
  27. With the expansion of output, the short run average cost curve, beyond a point, starts rising because:
  28. Marginal utility equals:
  29. When total revenue is maximum in monopoly, elasticity of demand is:
  30. In monopolistic competition, the real differentiation in products is due to difference in: