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4

In monopolistic competition, the firms face:

A. Horizontal demand curve

B. Vertical demand curve

C. Similar demand curve

D. Differential demand curve

Correct Answer :

C. Similar demand curve


Related Questions

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4

According to Marshallian approach, utility:

A. Can be added

B. Can be subtracted

C. Can be multiplied

D. Can be divided

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4

A price is a ratio of exchange between:

A. Money and exchange

B. Quantity and production

C. Production and consumption

D. Money and quantity

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4

The MRTS along an iso-quant goes on to:

A. Appear

B. Diminish

C. Prominent

D. Increase

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4

In case of giffin good, price effect is:

A. Positive

B. Negative

C. Neutral

D. Infinite

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4

In monopolistic competition, the individual demand curve is also known as:

A. Planned products curve

B. Planned material curve

C. Planned costs curve

D. Planned sales curve

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4

Which of the following is an implicit cost of production?

A. Wages of the labor

B. Charges of electricity

C. Interest on owned money capital

D. Payment for raw materials

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4

Excess capacity is not found under:

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

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4

When AC curve falls, MC curve falls:

A. More than AC curve

B. Less than AC curve

C. Equal to AC curve

D. None of the above

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4

The giffen paradox is an exception to law of:

A. Supply

B. Demand

C. Production

D. Consumption

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4

The advantage of using indifference curves rather than marginal utilities is:

A. We do not need to attach util values to consumption

B. Consumers can attain higher utility

C. It takes into account how much income the household has

D. We can determine how much of one good the consumer is willing to sacrifice in order to consume one more unit of another

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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 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

Production is a function of:

A. Profits

B. Costs

C. Inputs

D. Price

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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

According to the principle of substitution?

A. Many goods have no effective substitutes

B. Nearly all goods have substitutes

C. The prices of substitute goods must be the same

D. Buyers will stop buying a good if its price rises

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4

In case the two commodities are complements, cross elasticity will be:

A. Positive

B. Unitary

C. Negative

D. Infinite

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4

When with a change in price the total outlay (expenditures) on a commodity remains constant, it is a case of:

A. Perfect elasticity (infinitely elastic)

B. Perfect inelasticity (zero elasticity)

C. Unit elasticity

D. Zero elasticity (infinitely inelastic)

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4

When total product falls:

A. MP is positive

B. MP is negative

C. MP is falling

D. MP is rising

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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

MC curve is:

A. L-shaped

B. U-shaped

C. V-shaped

D. Both a and b depending on situation

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4

To attain maximum profits during short-run a firm should produce the output that will:

A. Yield maximum total revenue

B. Minimize marginal cost

C. Maximize marginal cost

D. Equate marginal revenue with marginal cost

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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

Cournot equilibrium is attained where two reaction curves:

A. Repel each other

B. Represent each other

C. Intersect each other

D. None of the above

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4

An indifference curve shows the bundles of two goods among which a consumer remains:

A. Indifferent

B. Different

C. In equilibrium

D. Dominant

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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

Which of the following has more elastic demand curve?

A. A commodity without substitutes

B. A commodity with substitutes

C. A commodity on which a small fraction of income is spent

D. A commodity the use of which cannot be postponed

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4

When the slope of a demand curve is zero (also known as vertical demand curve) then elasticity will be:

A. Zero (perfectly inelastic)

B. Equal to one (unitary elastic)

C. Infinite (perfectly elastic)

D. None of the above

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4

In monopoly:

A. The producer will often produce a volume that is less than the amount which would maximize the social welfare.

B. The producer will often produce a volume that is more than the amount which would maximize the social welfare.

C. The consumers will often consume a volume that is more than the amount which would maximize the social welfare.

D. None of the above

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4

Profits of a firm will be calculated taking into account the units produced and the difference between:

A. Real cost and money cost

B. Variable cost and fixed cost

C. Average cost and average revenue

D. Marginal cost and average cost

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4

The general markets results from the imposition of price ceilings has been:

A. Higher prices

B. Increased prices

C. Increased consumption

D. Shortage of products