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What is the correct answer?

4

Price discrimination is undertaken with the aim of:

A. Increasing sales and maximizing profits

B. Reducing sales and raising prices

C. Minimizing cost and maximizing revenue

D. Serving the markets without earning profits

Correct Answer :

A. Increasing sales and maximizing profits


Related Questions

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4

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

Marginal Utility (MU) curve is always:

A. Rising

B. Falling

C. Parallel to X-axis

D. Parallel to Y-axis

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4

In monopolistic competition, the aim of the firm is to:

A. Maximize output

B. Minimize output

C. Minimize cost

D. Maximize profit

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4

Which is not an essential feature of a socialist economy?

A. Social ownership of the means of production

B. Freedom of enterprise

C. Use of centralized planning

D. Government decisions

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4

In the case of an inferior good, the income effect:

A. Partially offsets the substitution effect

B. Reinforces the substitution effect

C. Is equal to the substitution effect

D. More than offsets the substitution effect

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4

Total variable costs in equation form are:

A.

B.

C.

D.

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4

The main contribution of Prof. Lord Keynes is in the field of:

A. Determination of the rate of interest

B. Determination of the market price

C. Determination of the wage rate

D. Determination of production of firm

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4

The Hicksian indirect utility function in the form of equation is:

A. x =f(P)

B. x =a-bp

C.

D.

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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

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

In second degree price discrimination, monopolist takes away :

A. All of the consumer surplus

B. All of the producer surplus

C. Some part of the consumer surplus

D. None of them

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4

The fundamental choices that a society must make about the use of its resources include:

A. How much to produce

B. How to produce

C. How to distribute

D. All of the above

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4

Price effect occurs on the higher IC in case of:

A. Slutsky approach

B. Hicksian approach

C. Marshallian approach

D. None of the above

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4

If the commodity is normal then the Income Effect (I.E) and the Substitution Effect (S.E):

A. Both move together and reinforce each other

B. One moves and the other remains constant

C. Move in the opposite direction and neutralize each other

D. Both remain constant

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4

According to Chamberline, in monopolistic competition, differentiation is determined by:

A. Choices

B. Preferences

C. Both a and b

D. None of the above

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4

Under price discrimination, the buyers must:

A. Be similar

B. Not be similar

C. Equal

D. None of the above

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4

External economies are witnessed in:

A. A rising supply curve

B. A rising demand curve

C. A falling supply curve

D. A falling demand curve

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4

The isoquant approach is based upon:

A. One output

B. One input

C. Two outputs

D. Two inputs

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4

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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4

In monopolistic competition, the customers are attached with one product because of:

A. Product similarity

B. Product differentiations

C. Product inferiority

D. None of the above

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4

By increasing the price of its products above those of its competitors, a perfectly competitive seller:

A. Can sell more

B. Reduces its revenues

C. Can sell nothing

D. Increases its revenues

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4

If Cobb-Douglas production function is homogeneous of degree greater than one (n>1), then it shows:

A. Constant returns to scale

B. Increasing returns to scale

C. Decreasing returns to scale

D. None of the above

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4

Normally when price per unit of time falls:

A. Quantity demanded increases

B. Quantity demanded decreases

C. Quantity demanded remains constant

D. Quantity demanded becomes zero

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4

The cross-price elasticity of the demand for orange juice with respect to the price of apple juice is probably:

A. Negative

B. Positive

C. Near infinite

D. Zero

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4

Demand of a commodity is elastic when:

A. Change in its price causes a proportionately greater change in its quantity demanded

B. Change in its price does not change its quantity demanded

C. Change in consumers income causes change in demand

D. None of the above

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4

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 1890, Principles of Economics was written by:

A. Prof. Robbins

B. Alfred Marshal

C. Prof. Senior

D. Adam Smith

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4

In price leadership, like leader, the follower firm may:

A. also maximize its profits

B. not maximize its profits

C. maximize its costs

D. none of the above

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4

By reducing the prices of its products below those of its competitors, a perfectly competitive seller:

A. Reduces its revenues

B. Increases its revenues

C. Can sell nothing

D. None of the above

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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