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4

Least cost combination of two factor inputs is achieved at a point where:

A. Budget line cuts the isoquant

B. Budget line is below the isoquant

C. Budget line is tangent with isoquant

D. None of the above

Correct Answer :

C. Budget line is tangent with isoquant


Related Questions

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4

Elasticity of Substitution (s) is defined as:

A. Percentage change in capital-labor ratio dividing by percentage change in

B. Percentage change in dividing by percentage change in capital-labor ratio

C. Percentage change in inputs dividing by percentage change in outputs

D. None of the above

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4

Short run cost curves are influenced by:

A. Principle of returns to scale

B. Law of variable proportions

C. External and internal economies and diseconomies

D. None of the above

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4

The vertical demand curve for a commodity shows that its demand is:

A. Highly elastic

B. Perfectly inelastic

C. Fairly elastic

D. Moderately elastic

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4

If a consumer buys a product that costs Rs.3 and provides an additional 18 units of satisfaction, then for this purchase:

A. Total utility will increase by 6 units

B. The marginal utility per rupee is 6

C. The consumer will buy more because marginal utility is positive

D. The consumer obtained an extra54 units

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4

Economies of large-scale production:

A. Lead to greater specialization

B. Offsets the effects of the law the law of comparative advantage

C. Lead to greater diversification of individual production

D. Cause firms to use more capital and less labor

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4

An increase in the supply of a commodity is caused by:

A. Improvements in its technology

B. Fall in the prices of other commodities

C. Fall in the prices of factors of production

D. All of the above

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4

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

A. Negative

B. Positive

C. Infinite

D. Zero

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4

The game theory concentrates on:

A. Gaming

B. Strategic decisions

C. Both a and b

D. None of the above

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4

Scarcity means:

A. Nil resources

B. Limited resources

C. Many resources

D. Extra resources

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4

Variable cost includes the cost of:

A. Hiring the building for the factory

B. Purchasing heavy machines

C. Paying the manager of the factory

D. Paying the laborers

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4

Price discrimination occurs when:

A. Different prices are charged to different consumers for homogenous products

B. Same prices are charged for differentiated products

C. Different prices are charged for homogenous goods for successive units to the same customer

D. Any of the above condition is present

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4

In modern theory, LAC = LMC after the attainment of:

A. Maximum optimal scale

B. Average optimal scale

C. Minimum optimal scale

D. None of the above

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4

Abstinence or Waiting theory of Interest was presented by:

A. Lord Keynes

B. J.S.Mill

C. Alfred Marshal

D. Prof.Senior

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4

Which of the following is not a property of indifference curve?

A. Convex to the origin

B. Slopes downwards to the right

C. Parallel to each other

D. Cannot intersect each other

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4

Diminishing returns occur when a firm:

A. Starts incurring losses

B. Uses more and more of one input while holding all other inputs constant

C. Does not utilize its inputs efficiently

D. Cuts down on the quantity of all inputs it uses

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4

In a competitive market, price is determined primarily by:

A. Transportation costs

B. The interplay of demand and supply

C. Costs of production

D. The marginal product of labour

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4

The number of sellers in oligopoly are:

A. Two

B. Many

C. Four

D. Very few

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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

Who is the author of the famous work Asian Drama: An Enquiry intro the Causes of Poverty of Nations?

A. Irving Fisher

B. J.B.Clark

C. J.M.Keynes

D. Gunnar Myrdal

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4

The Cambridge School of Thought refers to the group of English economists who came under the influence of:

A. Alfred Marshal

B. J.M.Keynes

C. Paul A.Samuelson

D. A.C.Pigou

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4

Classical production function is:

A. Q = f(L)

B. U =f(X)

C. Q =f(K)

D. Q =f(L,K)

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4

With the expansion of output, the short run average cost curve, beyond a point, starts rising because:

A. Average fixed cost increases sharply

B. More production yields lower per unit price

C. The law of variable proportions applies to short run production

D. Sales expenses become much larger

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4

The combination of labor and capital where the cost of a given output is minimized is known as:

A. Least cost factor combination

B. Optimum factor combination

C. Both a and b

D. None of them

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4

With firms having cost differences under perfect competition, a firm, which earns normal profit in the long-run is called:

A. An optimum firm

B. A representative firm

C. An oxford firm

D. A marginal firm

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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

The nominal income of a consumer is income in terms of:

A. Goods

B. Goods and services

C. Goods and services it can purchased

D. Monetary units

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4

Price elasticity of demand can be measured in the following way:

A. Percentage change in quantity demanded of a commodity divided by percentage change in price of that commodity

B. Change in quantity demanded of a commodity divided by change in price of that commodity

C. Percentage change in price of a commodity divided by percentage change in quantity demanded of that commodity

D. None of that commodity

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4

Variable costs refer to:

A. Capital cost plus operating costs

B. Capital costs alone

C. Capital costs plus spill-over costs

D. Operating costs alone

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4

Repetition of a game (Repeated Game):

A. Yields the same outcome over and over

B. Can result in behavior that is different from what it would be if the game were played once

C. Is not possible

D. Makes cooperative games into noncooperative games

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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