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4

Marginal cost is the cost:

A. Of the last unit of production

B. Of marginal unit

C. Of marginal efficient units

D. Of the average units of production

Correct Answer :

A. Of the last unit of production


Related Questions

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4

Under monopolistic competition, the firms compete alongwith:

A. Supreme powers

B. Discretionary powers

C. Low powers

D. None of the above

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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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By saying that monopolist create a contrived scarcity, economist mean that monopolist:

A. Restrict output to increase price

B. Produce where MC > P

C. Create a gap b/w quantity demanded and supplied

D. None of the above

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4

Which of the following is not an explicit cost of production?

A. Wage of self-employed proprietor

B. Depreciation on machinery

C. Returns on owned capital

D. Cost of raw materials

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According to translog production function, elasticity of substitution is:

A. Greater than one

B. Less than one

C. Zero

D. Equal to one

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4

Contraction in demand occurs when:

A. Price increases and demand decreases

B. Price increases but demand also increases

C. Price remains constant but demand falls down

D. Price falls down but demand remains constant

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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 cournot model firms:

A. Cannot make price adjustments

B. Can make price adjustments

C. Can adjust number of customers

D. None of the above

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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

The demand curve slopes downwards due to:

A. Income effect(I.E)

B. Substitution effect(S.E)

C. Taste effect

D. Both a and b

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4

Which of the following is assumed to be constant when a supply curve is drawn:

A. Technology

B. Number of buyers in the market

C. Consumer income

D. Household tastes

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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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For the equilibrium of the firm and the industry in the short period in a competitive market, the condition is:

A. P = AC

B. P = MC

C. AC = MC

D. MC = TR

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If a straight line supply curve passes through the point of origin O, the elasticity of supply is:

A. Zero

B. Infinity

C. Unity

D. More than unity

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Who introduced the concept of Elasticity of Demand into economic theory?

A. Alfred Marshal

B. Adam Smith

C. Karl Marx

D. George Stigler

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In economics, Externality means:

A. An externality is a cost or benefit which is not transmitted through prices

B. An externality is a cost or benefit which is transmitted through prices

C. An externality is a production received through external resources

D. None of the above

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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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The demand of the necessities is:

A. More elastic

B. Less elastic

C. Unit elastic

D. Zero elastic

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In the case of superior (normal) commodity, the income elasticity of demand is:

A. Positive

B. Unitary

C. Negative

D. Infinite

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If by doubling all inputs in the long run output is less than double, it is a case of:

A. Increasing returns to scale

B. Decreasing returns to scale

C. Constant returns to scale

D. Variable returns to scale

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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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A market-clearing price:

A. Is a disequilibrium price

B. Is an equilibrium price

C. Means a shortage exists as a market is cleared

D. Must be set by the government

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Competitors in monopolistic competition have full control over:

A. The price of their product

B. Product quality

C. The shape of the market demand curve

D. The elasticity of product substitution

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Marginal cost curve cuts the average cost curve:

A. At the left of its lowest point

B. At its lowest point

C. At the right of its lowest point

D. None of the above

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7.The costs which the firms have to face in order to change the price tags of their products and services are called:

A. Product costs

B. Real costs

C. Menu costs

D. Nominal costs

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The difference between average cost and average revenue is:

A. Total profit

B. Average profit

C. Net profit

D. Marginal profit

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In Edgeworth model, prices oscillate between:

A. Firms and industry price

B. Monopoly and duopoly price

C. Competitive and monopoly price

D. None of the above

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A mixed economy is characterized by the coexistence of:

A. Modern and traditional industries

B. Public and private sectors

C. Foreign and domestic investments

D. Commercial and subsistence farming

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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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Income distribution effects:

A. The price of complements

B. The price of substitutes

C. The market demand for commodities

D. The individuals scale of performances