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4

The behavior of MC curve is determined by the behavior of the:

A. AC curve

B. SC curve

C. TC curve

D. None of the above

Correct Answer :

C. TC curve


Related Questions

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4

Who wrote Mathematical Analysis for Economists?

A. J.P.Lewis

B. R.G.D.Allen

C. Paul A.Samuelson

D. E.D.Domar

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4

Supply of a commodity refers to:

A. Total stock of a commodity in the market

B. Total production of a commodity during the year

C. Total production plus total stock of a commodity

D. Amount of commodity offered for sale at some price at a particular place and time

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4

When a consumer reached at the point of saturation then marginal utility (MU) is:

A. Negative

B. One

C. Positive

D. Zero

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4

In case of budget line, we get pairs of two goods where consumers income is:

A. Fully spent

B. Half spent

C. Partially spent

D. Correctly spent

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4

If the prices of goods rise then:

A. The real income of consumer falls

B. The real income of consumer rises

C. The real income of a consumer remains constant

D. The real income of consumer becomes zero

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4

If the commodities X and Y are perfect substitutes then:

A.

B.

C. >

D. None of the above

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4

In the case of a giffen good, the income effect:

A. Is equal to the substitution effect

B. More than offsets the substitution effect

C. Reinforces the substitution effect

D. Only partially offsets the substitution effect

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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 situation of single buyer and single seller is called:

A. Monopoly

B. Multi-plant monopolist

C. Bilateral monopoly

D. Price discrimination

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4

Plumbing and pipe-fitting require many of the same skills. If the wage paid to pipe-fitters increased then the effect on the market for plumbers would probably be:

A. An increase in demand

B. A decrease in demand

C. An increase in supply

D. A decrease in supply

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4

Average Revenue means:

A. Per unit revenue received from all the units sold by the producer

B. Revenue of the units having average size

C. Total number of units× Revenue per unit

D. Total revenue × Number of units sold

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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

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

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4

An increase in the supply of a commodity is caused by:

A. Improvements in its technology

B. Fall in the prices of other commodities

C. Fall in the prices of factors of production

D. All of the above

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4

Under the law of variable proportions, the average and the marginal product of the variable factor would ultimately:

A. Become equal

B. Decrease

C. Become constant

D. Increase

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4

When price decreases and with it the total outlay on a commodity also decreases, it is a case of:

A. Perfect elasticity (infinitely elastic)

B. Relative elasticity (greater than one elasticity)

C. Perfect inelasticity (zero elasticity)

D. Relative inelasticity (less than one elasticity)

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4

The law of Diminishing Marginal Utility implies that the marginal utility of a good decreases as:

A. It gets more expensive

B. A household consumes more of it

C. Preference changes

D. A households income goes up

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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

The economic problem of determining the combination of inputs yielding lowest cost for producing a given output:

A. Is only a choice among the technologically efficient combination

B. Depends on the relative price of inputs

C. Depends on the price of the product

D. Depends on the profits made

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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 context of oligopoly, the kinky demand curve (kinked demand curve) hypothesis is designed to explain:

A. Price and output determination

B. Price rigidity (price stickness)

C. Price leadership

D. Collusion among rivals

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4

In economist the term invisible hand is refers to:

A. Hand of God

B. Market self regulating system

C. Hands of invisible people

D. Regulations of government

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4

Indifference curve approach (ordinal approach) is superior to utility approach (cardinal approach) because:

A. In ordinal approach we can separate the income effect from the substitution effect of a price change

B. In ordinal approach we can study the consumer behavior more closely

C. In ordinal approach the consumer is assumed more rational

D. In ordinal approach the consumer has more income

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4

If the commodity is inferior 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

In cournot model, firms make decisions separately regarding:

A. output

B. input

C. price

D. advertisement

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4

The Tit for Tat strategy means cooperation by the 2nd firm if:

A. 1st firm does not cooperate

B. 1st firm cooperates

C. 1st firm collapses

D. None of the above

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4

Economics is a:

A. Exact science

B. Inexact science

C. Pure science

D. All 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

If the price of product increases and in the result the demand for product B also increases then:

A. A and B are substitute goods

B. A and B are complementary goods

C. A is inferior to B

D. A is superior to B

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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