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What is the correct answer?

4

The addition or increment to the total cost involvesd in expanding or contracting output by one unit is called:

A. Fixed cost per unit

B. Variable cost per unit

C. Total cost per unit

D. Marginal cost

Correct Answer :

D. Marginal cost


Related Questions

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4

In dominant price leadership model, the small firms are like:

A. monopolistic firms

B. monopoly

C. competitive firms

D. none of the above

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4

If in the long run all factor inputs are increased three times and the resulting output is four times as before, it is a case of:

A. Decreasing returns to scale

B. Variable returns to scale

C. Constant returns to scale

D. Increasing returns to scale

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4

Normal profits are considered as:

A. Explicit costs

B. Implicit costs

C. Social costs

D. Private cost

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4

Variable cost includes the cost of:

A. Hiring the building for the factory

B. Purchasing heavy machines

C. Paying the manager of the factory

D. Paying the laborers

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4

One common definition of a luxury good is a good with income elasticity:

A. Greater than one

B. Equal to one

C. Less than one but more than zero

D. None of the above

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4

A vertical supply curve parallel to the price axis implies that the elasticity of supply is:

A. Zero

B. Infinite

C. Equal to one

D. Greater than zero but less than infinite

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4

The demand of the luxuries is:

A. More elastic

B. Less elastic

C. Unit elastic

D. Zero elastic

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4

Income-elasticity of demand is expressed as:

A. % change in quantity demanded % change in income

B. % change in income % change in quantity demanded

C. Change in income Change in quantity demanded

D. None of the above

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4

The sufficient condition of firms equilibrium requires:

A.

B.

C.

D. none of the above

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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

The elliptical isoquant represents the:

A. Economic combinations of labor and capital

B. Uneconomic combinations of labor and capital

C. Both a and b

D. None of the above

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4

In case of straight-line isoquant, the factors are not substituted because they are each others:

A. Imperfect substitutes

B. Perfect substitutes

C. Complements

D. None of the above

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4

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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4

In Recardian theory of value, the stress has been made on:

A. Marginal cost

B. Production cost

C. Labor cost

D. Supply cost

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4

Inputs or Factors of production are defined as:

A. Productive resources such as labor and capital equipment that firms use to manufacture goods and services are called inputs or factors of production

B. Unproductive resources that do not take part in production process are called inputs or factors of production

C. Firms own resources are called inputs or factors of production

D. None of the above

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4

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 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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4

The central problem of economics is:

A. Declining productivity

B. Increasing consumption

C. Limited material wants

D. Limited resources and unlimited wants

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4

If the commodities X and Y are perfect complements then:

A.

B.

C.

D. None of the above

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4

In cournot model, at equuilibrium when MC = MR, the elasticity of demand is:

A. equal to one

B. zero

C. negative

D. equal to 2

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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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4

In general, most of the production functions measure:

A. The productivity of factors of production

B. The relation between the factors of production

C. The economies of scale

D. The relations between change in physical inputs and physical output

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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

Returns to scale is a:

A. Timeless phenomenon

B. Short run phenomenon

C. Long run phenomenon

D. None of the above

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4

Which form of market structure is characterized by interdependence in decision-making as between the different competing firms?

A. Oligopoly

B. Perfect competition

C. Imperfect competition

D. None of the above

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4

If the production function is homogeneous, the expansion path will be a straight line through the origin whose slope determines the optimal:

A. L/K ratio

B. K/L ratio

C. P/L ratio

D. P/K ratio

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4

A country is advised to devalue (reduce external value of) its currency only when its exports face:

A. Inelastic demand in foreign markets

B. Elastic demand in foreign markets

C. Unit elastic demand in foreign markets

D. None of the above

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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

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

Decrease in demand results in:

A. Upward shift in demand curve

B. Downward shift in demand curve

C. Movement on the same demand curve

D. No movement or shift at all