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4

Short run cost curves are influenced by:

A. Principle of returns to scale

B. Law of variable proportions

C. External and internal economies and diseconomies

D. None of the above

Correct Answer :

B. Law of variable proportions


Related Questions

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4

The line from the origin to a point on an isoquant shows:

A. The wages employment ratio

B. The capital rent ratio

C. The rent labor ratio

D. The capital labor ratio

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4

Slope of a demand curve is:

A. Not relevant to elasticity

B. The only factor determining elasticity

C. Only one of the factors influencing elasticity

D. None of the above

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4

The average cost curve is a geometrical illustration of:

A. Hydraulic function

B. Cubic function

C. Pentagonic function

D. Quadratic function

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4

When the demand curve is rectangular hyperbola, it represents:

A. Unitary elastic demand

B. Perfectly elastic demand

C. Perfectly inelastic demand

D. Relatively elastic demand

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4

Under pure monopoly, there will be:

A. No distinction between firm and industry

B. One firm and no industry

C. No firm and no industry

D. None of the above

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4

If X and Y are close substitutes, a rise in the price of X will lead to:

A. Increase in demand for Y

B. Decrease in demand for Y

C. Decrease in demand for both X and Y

D. No change in demand for Y

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4

The output where TC = TR & AC = AR:

A. Break-even point

B. Load point

C. Shut-down point

D. Revenue cost point

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4

According to Marshal, the Law of Diminishing Returns is applicable to:

A. Industry

B. All fields of production

C. Agriculture

D. None of the above

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4

A firm in a position of equilibrium is supposed to be maximizing:

A. Output

B. Sales

C. Profits

D. None of the above

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4

In the theory of firm, Chamberline presented the idea of:

A. Rising cost

B. Falling cost

C. Rising input

D. Falling input

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4

Income effect operates through an increase

A. In nominal income

B. In money income

C. In wages

D. In real income because of the fall of price of a commodity

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4

According to Marshal, the Law of Diminishing Marginal Utility:

A. Applies on both money and other commodities

B. Does not apply on money

C. Does not apply on bank money but applies on cash money

D. Applies on all the commodities except on money

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4

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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4

The market demand for any commodity is the:

A. Average requirement for it in any given place

B. Amount of it wanted at any given price

C. Amount that people would like to buy during a period at different prices

D. Quantity needed to maintain a given standard of living

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4

Who is the author of Trade Cycle ?

A. R.Nurkse

B. R.C.Mathews

C. W.A.Lewis

D. K.N.Raj

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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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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

Firms average and marginal revenues are equal under:

A. Monopoly

B. Perfect competition

C. Oligopoly

D. Monopolistic competition

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4

The production possibility curve (PPC) is concerned with:

A. Resources of the economy

B. Interests of the economy

C. Limitations of the economy

D. Qualities of the economy

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Marginal utility (MU) always:

A. Increases

B. Decreases

C. Remains constant

D. None of above

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4

The pay-off matrix shows:

A. Possible outcomes

B. Possible benefits

C. Possible losses

D. None of them

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4

If a straight line supply curve makes an intercept on the Y-axis, elasticity of supply is:

A. Equal to unity

B. Less than unity

C. More than unity

D. Zero

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4

If the price of a product falls which of the following would occur?

A. Indifference curves shift down

B. Budget line shifts down

C. Indifference curve shift up

D. Budget line pivots

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4

When a competitive firm is in equilibrium in the long-run, its output is such that:

A. Costs per unit of output are lowest

B. Total profits are highest

C. Marginal cost is lowest

D. Profit per unit of output is zero

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4

Quantity demanded or supplied is measured in:

A. Monetary units

B. Physical units

C. Relative units

D. Constant units

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4

Price-taker firms:

A. Advertise to increase the demand for their product

B. Do not advertise, because most advertising is wasteful

C. Do not advertise because they can sell as much as they want at the current price

D. Who advertise will get more profits than those who do not

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4

In monopoly, the relationship between average revenue and marginal revenue curves is as follows:

A. Average revenue curve lies above the marginal revenue curve

B. Average revenue curve coincides with the marginal revenue curve

C. Average revenue curve lies below the marginal revenue curve

D. Average revenue curve is parallel to the marginal revenue curve

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4

A firm is a sum of persons who convert:

A. Goods into services

B. Output into inputs

C. Inputs into outputs

D. None of the above

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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

At the point where a straight line demand curve meets the quantity axis (x-axis), elasticity of demand is:

A. Equal to zero

B. Equal to one

C. Equal to infinite

D. More than one