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4

In monopolistic competition, the customers are attached with one product because of:

A. Product similarity

B. Product differentiations

C. Product inferiority

D. None of the above

Correct Answer :

B. Product differentiations


{In monopolistic competition, because of product differentiation (heterogeneous products), the each group of customers are attached with some specific product which is called brand loyalty.}

Related Questions

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4

The feasible part of the demand curve for the monopolist who is charging high price will be:

A. The elastic part of a demand curve

B. The inelastic part of a demand curve

C. The constant elastic part of the demand curve

D. None of the above

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4

Under monopoly and imperfect competition MC is:

A. More than the price

B. Less than the price

C. Equal to the price

D. Less than or equal to the price

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4

If price exceeds AVC but in smaller than AC at the best level of output, the firm is:

A. Making a profit

B. Incurring a loss but should continue to produce in the short-run

C. Incurring a loss and should stop producing immediately

D. Making a normal profit

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4

In discriminating monopoly (price discrimination), the cost of production in two markets are:

A. Different

B. Same

C. Zero

D. None of the above

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4

All of the following curves are U-Shaped except:

A. The AVC curve

B. The AFC curve

C. The AC curve

D. The MC curve

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4

The indifference curve technique:

A. Helps in separating the income effect and the substitution effect

B. Does not help in separating the two effects

C. Mixed up the two effects

D. None of the above

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4

In microeconomics, we study:

A. Aggregates of the economy

B. Few units of the economy

C. Large units of the economy

D. Individual units of the economy

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4

In the long-run competitive equilibrium, the theory predicts that:

A. TC = TR and MC = MR

B. Firms operate at a minimum average total cost

C. There is no incentive for entry or exit of firms

D. All these conditions exist

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4

Marshallian approach is also known as:

A. Cardinal approach

B. Ordinal approach

C. Consumer approach

D. Production approach

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4

Theory of revealed preference is based on:

A. Weak orderings

B. Neutral orderings

C. Partial orderings

D. Strong orderings

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4

If as a result of a decrease in price, total outlay (expenditures) on a commodity increases, its price-elasticity of demand is:

A. Perfectly elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unit elastic

D. Relatively inelastic (less than one elasticity)

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4

In sweezy model (kinked demand curve model), the role of MC curve:

A. Can be ignored

B. Cannot be ignored

C. Partially be ignored

D. None 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

According to classical approach, utility can be:

A. Ranked

B. Consumed

C. Expressed in numbers

D. Cannot be expressed in numbers

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4

The basic and essential economic problems in a community are related to choice and:

A. Freedom

B. Scarcity

C. Social class

D. Politics

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4

Isocost line shows the combinations of labor and capital where a firms budget is:

A. Fully spent

B. Half spent

C. Partially spent

D. Nearly spent

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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 the case of two factor inputs which are neither perfectly complementary nor perfect substitutes, the iso-product curve will be:

A. A downward sloping straight line

B. A downward sloping curve

C. An upward rising curve

D. Right angled iso-quants

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4

If a firm is producing output at a point where diminishing returns have set in, this means that:

A. Each additional unit of output will be more expensive to produce

B. Each additional unit of output will require increasing amount of inputs

C. Marginal product of the variable factor of production decreases as the quantity increases

D. All of the above

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4

One common definition of a luxury good is a good with income elasticity:

A. Greater than one

B. Equal to one

C. Less than one but more than zero

D. None of the above

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4

Human wants are:

A. Thousands

B. Few

C. Innumerable

D. Hundreds

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4

An optimum level of a firms output is:

A. Where marginal cost is minimum

B. Where average cost is minimum

C. Where both the marginal and the average cost curves are at their respective minimum

D. Where the firm earns the maximum profits

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4

Nash Equilibrium is stable:

A. They involve dominant strategies

B. They involves constant-sum games

C. Once the strategies are chosen, no player has an incentive to deviate unilaterally from them

D. None of the above

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4

The cournot model is a model of:

A. Instable equilibrium

B. Stable equilibrium

C. Constant equilibrium

D. Fluctuating equilibrium

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4

Price leadership is associated with:

A. Collusive oligopoly

B. Non-collusive oligopoly

C. Cartel

D. Perfect competition

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4

According to Chamberline, in monopolistic competition, differentiation is determined by:

A. Choices

B. Preferences

C. Both a and b

D. None of the above

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4

If the prices of goods rise then:

A. The real income of consumer falls

B. The real income of consumer rises

C. The real income of a consumer remains constant

D. The real income of consumer becomes zero

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4

The average product is given as:

A. Q.L

B. Q- L

C. Q+ L

D. Q/L

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4

The long run total cost is attained by:

A. LMC.Q

B. AC.Q

C. LC.Q

D. LAC.Q

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4

The substitution effect works to encourage a consumer to purchase more of a product when the price of that good is falling because:

A. The consumers real income has increased

B. The consumers real income has decreased

C. The product is now relatively less expensive than before

D. Other products are now less expensive than before