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4

In the long run:

A. All factors can be used in different proportions

B. Management can be re-organized

C. A firm can experience returns to scale

D. All of the above

Correct Answer :

D. All of the above


Related Questions

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4

At a point where a straight line demand curve meets the price axis (Y-axis), the elasticity of demand is:

A. Equal to one

B. Less than one

C. Equal to zero

D. Equal to infinite

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4

Which is not an essential feature of a socialist economy?

A. Social ownership of the means of production

B. Freedom of enterprise

C. Use of centralized planning

D. Government decisions

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4

A loss bearing firm will continue to produce in the short run so long as the price at least covers:

A. Average variable cost

B. Average fixed cost

C. Average variable cost + average fixed cost

D. Marginal costs

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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

The difference between the average total cost and average variable cost as output increases will:

A. Increases

B. Remains the same

C. Diminishes

D. Zero

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4

In the long run:

A. All factors can be used in different proportions

B. Management can be re-organized

C. A firm can experience returns to scale

D. All of the above

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4

Marginal utility means:

A. Utility derived from the last unit of production

B. Utility derived from the last unit of a commodity which is being consumed

C. Total utility- Average utility

D. None of the above

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4

Which of the following is the work of A.C.Pigou?

A. Economics of Welfare

B. Commerce and Trade

C. Industrial Economics

D. None of the above

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4

In centralized cartel, the firms are like:

A. Price takers

B. Price setters

C. Price discriminators

D. None of the above

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4

Elasticity (E) expressed by the term, 8 >E>1, is:

A. Perfectly elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unitary elastic

D. Relatively inelasticity (less than one elasticity)

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4

Time Preference Theory of Interest was presented by:

A. Adam Smith

B. Carl Menger

C. Ruskin

D. J.B.Say

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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

In monopolistic competition, the cost curves of all firms are:

A. Uniform

B. Different

C. Dependent

D. Independent

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4

The concept of product differentiation was firstly introduced by:

A. Smith

B. Kaldor

C. Sraffa

D. Marshal

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4

4.The Law of Diminishing Returns according to the modern view, applies to:

A. Agriculture

B. All fields of production

C. Industry

D. Services

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4

The reaction curve of a firm is attained by joining the:

A. Isoprofit curve

B. Super profit curve

C. Normal profit curve

D. Indoprofit curve

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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

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

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

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4

If there are many firms producing similar but differentiated products, the competition is generally said to be:

A. Oligopoly

B. Pure competition

C. Perfect competition

D. Monopolistic competition

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4

Rotten eggs are:

A. Free goods

B. Economic goods

C. Luxury goods

D. None of the above

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4

Cross-elasticity of demand or cross-price elasticity between two independent goods will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

The factors of production in perfect competition are:

A. Stagnant

B. Mobile

C. Immobile

D. Rare

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4

Who wrote A Contribution to the Theory of Trade Cycle?

A. N.Kaldor

B. J.R.Hicks

C. A.C.Pigou

D. J.M.Keynes

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4

The goods sold by firms under monopolistic competition are technological as well as:

A. Economic complements

B. Economic substitutes

C. Economic inferiors

D. None of the above

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4

Supply of commodity is a:

A. A stock concept

B. A flow concept

C. Both stock and flow

D. None of the above

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4

In a perfectly competitive market, suppliers must know:

A. The incomes of consumers

B. The price of the good

C. What other commodities households could substitute for the good

D. Consumers expectations of the future

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4

Which of the following oligopoly models is concerned with the maximization of joint profits?

A. Price leadership model

B. Bertrands model

C. Collusive model

D. Edgeworths model

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4

The non-price competition cartel is a:

A. stable cartel

B. unstable cartel

C. prominent cartel

D. special cartel

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4

Economics is a:

A. Exact science

B. Inexact science

C. Pure science

D. All of the above