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4

Kinked Demand Curve is consistent with which one of the following market situations?

A. Pure competition

B. Pure monopoly

C. Oligopoly

D. Monopolistic competition

Correct Answer :

C. Oligopoly


Related Questions

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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 case of complementary factors, the isoquants are:

A. L-shaped

B. J-shaped

C. M-shaped

D. V-shaped

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4

The supply curve would probably shift to the right if:

A. Resource( factors of production) used in production became more costly

B. The technology of production improves

C. Consumers income increased

D. Some sellers left the market

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4

When marginal costs curve cuts average costs curve, average costs are:

A. Maximum

B. Zero

C. Minimum

D. Equal to one

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4

The concept of period refers to:

A. A specific duration of time

B. A varying duration of time

C. A duration of time which permits necessary adjustments

D. A period with calculated intervals

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4

The general form of Cobb-Douglas production function is:

A.

B.

C.

D.

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A market demand schedule is obtained by adding individual demand schedules:

A. Horizontally

B. Vertically

C. Permanently

D. Perpetually

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4

The Law of Proportionality is another name of:

A. The law of diminishing marginal utility

B. The law of demand

C. The Law of Diminishing Returns

D. The law of supply

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4

When total revenue (TR) falls in monopoly then elasticity of demand is:

A. E =1

B. E >1

C. E <1

D. E =0

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4

The monopolist firm is price setter. The price setter firm is one which:

A. Can influence the market price

B. Cannot influence the market price

C. Can sell at zero price

D. None of the above

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4

The name of the system of direct exchange is:

A. Price system

B. Barter system

C. Islamic economic system

D. Socialistic system

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4

If as a result of an increase in prices, total outlay (expenditures) on a commodity decreases, its price-elasticity of demand is:

A. Perfect elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unit elastic

D. Relatively inelastic (less than one elasticity)

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If the demand curve is vertical then its slope is:

A. Infinite

B. Zero

C. Equal to one

D. None of the

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In monopoly and perfect competition, TC curves are:

A. Different

B. Similar

C. Opposite

D. None of the above

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4

Identify the author of The Principles of political Economy and Taxation:

A. Alfred Marshal

B. J.S.Mill

C. David Ricardo

D. A.C.Pigou

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4

In long run, a firm can change:

A. Fixed factors

B. Variable factors

C. Both of them

D. None of them

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4

Rational economic behavior on the part of the consumer means that he will:

A. Save as much of his income as possible

B. Spend as much of his income as possible

C. Buy everything at the lowest possible price

D. Make wise choices among available economic goods

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4

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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Some economists refer to iso-product curves as:

A. Engels curve

B. Production indifference curve

C. Budget line

D. Ridge line

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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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Under which of the following forms of the market structure does a firm have no control over the price of its product?

A. Monopoly

B. Monopolistic competition

C. Oligopoly

D. Perfect competition

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4

According to Marshal, the Law of Diminishing Marginal Utility:

A. Applies on both money and other commodities

B. Does not apply on money

C. Does not apply on bank money but applies on cash money

D. Applies on all the commodities except on money

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4

If the factors have to be employed in a fixed ratio, then the elasticity of substitution under Leontief technology is:

A. One

B. Zero

C. Two

D. Five

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4

If the consumers expect that the price of computers will decrease in next year then:

A. Current demand for computers will fall

B. Current demand for computers will rise

C. Current demand will change unpredictably

D. Current supply of computers will rise

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4

If the price of a product falls then quantity demanded tends to increase ceteris paribus because:

A. The MU/P ratio has decreased

B. Of the income and substitution effects

C. Consumers tend to feel poorer when prices fall

D. When price falls the demand curve shifts right

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4

Change in demand refers to:

A. Movement on the same demand curve

B. Upward shift of the demand curve

C. Downward shift of the demand curve

D. Upward or downward shift of the demand curve

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4

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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In terms of price, the indirect utility function may be:

A. Concave

B. Quasi-convex

C. Straight line

D. Convex

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When total revenues equal to total opportunity cost then the firm will earn:

A. Abnormal profit

B. Zero profit

C. Normal profit

D. Negative profit

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4

The demand for cigarettes is price inelastic implying a unit tax on this commodity will

A. Will mainly paid by sellers of the product

B. By mainly paid by cigarette smokers

C. Be mainly paid by tobacco growers

D. None of the above