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One way the government can induce a monopolist to expand his output is by imposing:

A. A specific tax on the monopolists output

B. A price ceiling that make the monopolist lower his price

C. A price floor that make the monopolist raise his price

D. A heavy tax on the monopolists profit

Correct Answer : B.


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  2. At low prices, demand is likely to be:
  3. We can measure consumers surplus with the help of
  4. The firm is said to be in equilibrium when the difference between revenue and cost is:
  5. Which one of the following is also known as Plant Curves:
  6. Of the following commodities, which has the lowest price-elasticity of demand?
  7. Who wrote Mathematical Analysis for Economists?
  8. In cournot model, at equuilibrium when MC = MR, the elasticity of demand is:
  9. The slope of budget line shows the price ratios of:
  10. The right of individuals to control productive resources is known as:
  11. Stable cobweb model is a:
  12. Contracts made by firms in cooperative games are:
  13. In the case where two commodities are good substitutes then cross elasticity will be:
  14. The law of Diminishing Marginal Utility implies that the marginal utility of a good decreases as:
  15. The number of sellers in duopoly is:
  16. Who is the author of Problems of Capital Formation in Underdeveloped Countries?
  17. At high prices, demand is likely to be:
  18. The amount of income left over for a consumer in equilibrium is :
  19. MC = MR = AC = AR shows the long run equilibrium position of the:
  20. When with a change in price the total outlay (expenditures) on a commodity remains constant, it is a…
  21. The number of sellers in oligopoly is:
  22. An effective price ceiling usually results in:
  23. Income-demand curve shows:
  24. The study of economic theory for the sake of certain objective is called:
  25. LMC represents change in LTC (long-run total cost) due to producing an additional unit of a good while…
  26. Marshalls definition of economics was strongly criticised by:
  27. In the case of an inferior commodity, the income-elasticity of demand is:
  28. Indifference curve represents:
  29. A demand curve which is horizontal and parallel to x-axis represents:
  30. Pure monopoly exists: