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4

Profits of a firm will be calculated taking into account the units produced and the difference between:

A. Real cost and money cost

B. Variable cost and fixed cost

C. Average cost and average revenue

D. Marginal cost and average cost

Correct Answer :

C. Average cost and average revenue


Related Questions

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4

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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4

If a firm produces zero output in the short period then which statement is true?

A. Its total cost will be zero

B. Its variable cost will be positive

C. Its fixed cost will be positive

D. Its average cost will be zero

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4

Who finalized the model of imperfect competition?

A. Ricardo

B. Marshal

C. Chamberlin

D. Mrs. Robinson

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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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Neutral Technological Progress can be defined as:

A. Technological progress that causes to raise the marginal product of capital and labor in the same proportion

B. Technological progress that causes the marginal product of capital to increase relative to the marginal product of labor

C. Technological progress that causes the marginal product of labor to increase relative to the marginal product of capital

D. None of the above

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4

Time Preference Theory of Interest was presented by:

A. Adam Smith

B. Carl Menger

C. Ruskin

D. J.B.Say

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4

Each short run average cost curve:

A. Has to touch the long run cost curve

B. Has to cross the long run cost curve

C. Has to lie above all points on the long run cost curve

D. Coincides with the long run cost curve at some point

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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

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4

In case of complementary factors, the isoquants are:

A. L-shaped

B. J-shaped

C. M-shaped

D. V-shaped

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4

If a new production technology for producing compact discs is developed and new firms are attracted to this field:

A. The supply curve will shift down or right

B. The supply curve will shift up or left

C. Both demand and supply curve shifts would occur

D. None of the above

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4

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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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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In the long run average costs curve, a firm can change:

A. Labour

B. Capital

C. Both of them

D. None of them

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If Cobb-Douglas production function is homogeneous of degree less 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

Economics define technology as:

A. Societys knowledge of production

B. Applied science

C. Knowledge of science and mathematics

D. None of the above

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In Prisoners Dillemma, the players are:

A. Industrialists

B. Prisoners

C. Common men

D. Workers

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Social costs equal private costs when:

A. Marginal cost is zero

B. Total cost is zero

C. External costs are zero

D. Average costs are zero

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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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Under monopolistic competition, the products sold by the firms are:

A. Economic substitutes

B. Technical substitutes

C. Both a and b

D. None of the above

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In 1776, a famous book An enquiry into the nature and causes of the wealth of nation was written by:

A. J.S.Mill

B. Adam Smith

C. Robert Malthus

D. David Ricardo

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In perfect competition, the slope of the total revenue curve of a firm is equal to the:

A. Market price

B. AVC

C. TFC

D. AFC

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The demand curve of a firm in monopolistic competition is:

A. Negatively sloped

B. Vertical

C. Horizontal

D. Positively sloped

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4

Production function shows:

A. Technical relationship between inputs and output

B. Profitability production

C. Relation between MR and MC

D. Relation between AR and AC

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4

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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4

The cobweb model will convergent when the slope of:

A. Demand curve is more than supply curve

B. Supply curve is more than demand curve

C. Supply curve is equal to demand curve

D. None of the above

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4

The games which played by players again and again are called:

A. Repeated games

B. Cooperative games

C. Non-cooperative games

D. Constant games

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Marginal utility equals:

A. Slope of total utility curve

B. Slope of average utility curve

C. Slope of marginal utility curve

D. Slope of total revenue curve

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4

Who wrote An Introduction to Positive Economics?

A. R.G.Lipsey

B. Paul.A.Samuelson

C. E.D.Domar

D. J.M.Keynes

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Total utility and price are:

A. Directly related

B. Unrelated

C. Closely related

D. Negatively related

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MC curve is:

A. L-shaped

B. U-shaped

C. V-shaped

D. Both a and b depending on situation