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4

The firm in cournot model:

A. face costs

B. face taxes

C. donot face taxes

D. donot face costs

Correct Answer :

D. donot face costs


Related Questions

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4

In finding equilibrium position of a profitmaximizing firm, which technique is most convenient?

A. Total revenue and total cost technique

B. Marginal revenue and marginal cost technique

C. Demand and supply technique

D. None of the above

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4

When a consumer is in equilibrium then slope of indifference curve is:

A. Equal to the slope of budget line

B. Greater than the slope of budget line

C. Smaller than the slope of budget line

D. Parallel to the slope of budget line

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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

A demand curve is not related to:

A. The price of the commodity

B. The time period

C. The price of substitutes

D. Any of the above

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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

At high prices, demand is likely to be:

A. More elastic

B. Less elastic

C. Unit elastic

D. Perfectly inelastic

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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

Each SAC represents a particular level of:

A. Input

B. Output

C. Both of them

D. None of them

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4

Micro economics is concerned with:

A. Product markets

B. Factor markets

C. Supply and demand

D. a, b and c

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4

The game theory is concerned with:

A. Perfect competition

B. Imperfect competition

C. Price discrimination

D. Duopoly and oligopoly

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4

A firm under perfect competition has:

A. An AR curve which is a horizontal straight line

B. An AR curve which slopes downward

C. An AR curve which has a kink

D. An AR curve shape of which cannot be predicted

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4

In perfectly competitive markets, the profit maximization rule can be represented by:

A. MR=ATC

B. P=ATC

C. P=MC

D. P=AC

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4

For the equilibrium of the firm and the industry in the short period in a competitive market, the condition is:

A. P = AC

B. P = MC

C. AC = MC

D. MC = TR

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4

The long run average cost curve is the envelope of:

A. SACs

B. LACs

C. SMCs

D. LMCs

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4

In the long run:

A. All factors can be used in different proportions

B. Management can be re-organized

C. A firm can experience returns to scale

D. All of the above

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4

If under perfect competition, in the short period, price does not cover the average cost completely, the firm will even then stay in the market as long as:

A. The average fixed cost is covered

B. The average variable cost is covered

C. Some profit is earned

D. The entrepreneurs enjoy producing

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4

Law of variable proportions is based on the assumption of:

A. Short period of time

B. Long period of time

C. Timeless production relationship

D. All of the above

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4

Marginal revenue from a given output:

A. The price at which the marginal unit sells

B. Total revenue sale of all units divided by volume of sales

C. Average revenue of total output average revenue of last unit

D. The change in total revenue resulting from the sale of one unit more of output

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4

Which of the following is an implicit cost of production?

A. Wages of the labor

B. Charges of electricity

C. Interest on owned money capital

D. Payment for raw materials

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4

An iso-product (an isoquant) curve slopes:

A. Downward to the left

B. Downward to the right

C. Upward to the right

D. Upward to the left

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4

The combination of labor and capital where the cost of a given output is minimized is known as:

A. Least cost factor combination

B. Optimum factor combination

C. Both a and b

D. None of them

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4

If two goods are complements then indifference curve (IC) will be:

A. Straight line

B. Convex to origin

C. Concave to origin

D. Lshaped

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4

The spending of money by the producer to influence consumers is an example of:

A. Derived demand

B. Joint demand

C. Demand creation

D. Compressed demand

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4

Equilibrium of a discriminating monopolist requires the fulfillment of which one of the following conditions?

A. It must be profitable to him to sell output in more than one market

B. Marginal revenue in both markets must be the same

C. Marginal revenue in both markets must also be equal to the marginal cost of producing the monopolists aggregate output

D. All the above

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4

The situation in between the extremes of the govt. controlled, planned economy and the perfectly free, unplanned economy is known as:

A. Developed economy

B. Laissez-fair economy

C. Mixed economy

D. Capitalistic economy

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4

With the decrease in marginal valuation of a specific commodity, the price offered by the people:

A. Decreases

B. Increases

C. Become very high

D. Remain unchanged

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4

Cross-elasticity of demand is measured as:

A. Percentage change in the quantity of a commodity demanded divided by the percentage change in the price of that commodity

B. Percentage change in the quantity of commodity X divided by percentage change in the price of commodity Y

C. Percentage change in the quantity demanded of commodity X

D. Percentage change in the quantity demanded of commodity X divided by percentage change in the quantity demanded of commodity Y

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4

Diminishing returns occur when a firm:

A. Starts incurring losses

B. Uses more and more of one input while holding all other inputs constant

C. Does not utilize its inputs efficiently

D. Cuts down on the quantity of all inputs it uses

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4

Whenever a group of monopolistic competitors attains equilibrium, the firms in this group usually:

A. Charge different prices, but produce identical outputs

B. Produce different outputs, but charge identical prices

C. Charge different prices, and produce different outputs

D. None of the above

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4

In substitution effect and income effect:

A. The substitution effect is more certain

B. The income effect is more certain

C. The substitution effect is uncertain

D. The income effect is always positive