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4

Of the following, which one corresponds to fixed cost?

A. Payments for raw materials

B. Labor cost

C. Transportation charges

D. Insurance premium on property

Correct Answer :

D. Insurance premium on property


Related Questions

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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

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The study of economic theory for the sake of certain objective is called:

A. Positive Economics

B. Normative Economics

C. Micro Economics

D. Development Economics

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The difference between accounting profits and economic profits is:

A. Implicit costs

B. Explicit costs

C. Fixed costs

D. Variable costs

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The elasticity of substitution measures the percentage change in the ratio of inputs when any producer observes the percentage change in:

A. Output cost

B. Output ratio

C. Input prices

D. Input ratio

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Demand for a commodity is elastic when it has

A. Only one use

B. Many uses

C. Uses which cannot be postponed

D. Uses very essential for the consumer

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The main contribution of Alfred Marshal is in the field of:

A. Research in mathematical economics

B. Economics of labor

C. Theory of production

D. Theory of demand

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A good tends to have relatively inelastic demand, if:

A. Close substitutes are available

B. It has a high price

C. It is a luxury

D. It has no very close substitutes

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4

The game theory takes into consideration:

A. Reaction of rival firms

B. Reactions of people

C. No reaction of rival firms

D. None of the above

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Elasticity (E) expressed by the term, 1>E>0, is:

A. Perfectly elastic

B. Relatively elastic

C. Unitary elastic

D. Relatively inelastic

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In sweezy model (kinked demand curve model), the role of MC curve:

A. Can be ignored

B. Cannot be ignored

C. Partially be ignored

D. None of the above

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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

Ordinal approach includes arranging:

A. The different combinations of X and Y in any way the consumer wants

B. The different combinations of X and Y higher and lower and measuring the difference of utility between them

C. The different combinations of X and Y higher and lower and not measuring the difference of utility between them

D. None of above

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4

If two goods are complements then indifference curve (IC) will be:

A. Straight line

B. Convex to origin

C. Concave to origin

D. Lshaped

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If a commodity sold under monopoly is got free of cost, then MC will be:

A. Zero

B. Identical with the MR

C. A horizontal straight line

D. Infinite

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The long run total cost is attained by:

A. LMC.Q

B. AC.Q

C. LC.Q

D. LAC.Q

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4

The price consumption curve (PCC) for commodity X is the locus of points of consumer equilibrium resulting when:

A. The price of only Y is varied

B. The price of only X is varied

C. The prices of both Y and X are varied

D. None of the above

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4

Technological Progress (Invention) can be defined as:

A. Technological progress shifts the production function by allowing the firm to achieve more output from a given combination of inputs (or the same output with fewer inputs)

B. Technological progress shifts the production function by allowing the firm to achieve less output from a given combination of inputs (or the same output with more inputs)

C. Technological progress shifts the import function to the right

D. None of the above

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The firm is said to be in equilibrium when the difference between revenue and cost is:

A. Maximum

B. Minimum

C. Zero

D. One

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The concept of industry in monopolistic competition has been replaced by:

A. Firm

B. Product group

C. Producers

D. Shopkeepers

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The production function of homogeneous of degree one (n=1) is also called:

A. Linearly homogeneous

B. Zero homogeneous

C. Infinite homogeneous

D. None of the above

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An inferior commodity is one whose quantity demand decreases when income of the consumer:

A. Decreases

B. Increases

C. Remains constant

D. Zero

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4

Identify the work of T.W.Schultz:

A. Transforming Traditional Agriculture

B. Productivity and Technical Change

C. Jobs, Poverty and the Green Revolution

D. Causes of Poverty

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Indifference curve represents:

A. Only two commodities

B. Only three commodities

C. More than three commodities

D. Any number of commodities

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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

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

Which of the following conditions is met in the long-run equilibrium in monopolistic competition, where the firm is earning only normal profits?

A. MC =AC and P

B. MC = AC and P=MR

C. P =MC and P

D. MC=MR and P =AR= ATC

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In real life firms:

A. Loss because of past

B. Learn from past

C. Destroy because of past

D. None of the above

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Iso-product curve (isoquant) shows:

A. A given quantity of output that can be produced by various combinations of two inputs

B. Varying quantities of output that can be produced by the same combination of two factors

C. Combination of two factors that can give the least cost of production

D. Combination of two goods that cost the same amount to the producer

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4

The marshallian demand curve includes:

A. Substitution Effect

B. Income Effect

C. Both substitution and income effect

D. None of them

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Nash equilibrium is applicable in case of:

A. Cournot model

B. Edgeworth model

C. Chamberline model

D. Sweezy model