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4

The kinked demand curve comes into being where:

A. Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other

B. Proportional demand curve (PDC) and individual demand curve (IDC) are parallel to each other

C. Proportional demand curve (PDC) and individual demand curve (IDC) repel each other

D. None of the above

Correct Answer :

A. Proportional demand curve (PDC) and individual demand curve (IDC) intersect each other


Related Questions

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4

Increasing returns imply:

A. Constant average cost

B. Diminishing cost per unit of output

C. Optimum use of capital and factor

D. External economies

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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 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

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4

When the income of consumer increases then budget line will:

A. Get steeper

B. Shift parallel to right

C. To get flatter

D. To shift upward

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4

Supply and demand changes have their most rapid impact in:

A. Auction market

B. Contract markets

C. Market for commercial office space

D. Natural gas market

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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

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

A. Increase in demand for Y

B. Decrease in demand for Y

C. Increase in demand for both X and Y

D. Increase in demand for Y

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4

Elasticity of supply means change in supply due to change in:

A. Price of the commodity

B. Conditions of supply

C. Taste of the consumer

D. Demand for the commodity

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4

Who stated explicitly for the first time the Law of Camparative Costs?

A. David Ricardo

B. Adam Smith

C. James Mill

D. A.C.Pigou

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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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4

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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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

If a straight line supply curve passes through the point of origin O, the elasticity of supply is:

A. Zero

B. Infinity

C. Unity

D. More than unity

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4

The substitution effect works to encourage a consumer to purchase more of a product when the price of that good is falling because:

A. The consumers real income has increased

B. The consumers real income has decreased

C. The product is now relatively less expensive than before

D. Other products are now less expensive than before

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4

The firm is at equilibrium where:

A. Output is maximum

B. Profit is maximum

C. Revenues are maximum

D. Profit is minimum

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4

Using total revenue and total cost, a profit maximizing firm will be equilibrium at a point:

A. Where the gap between the two is the smallest

B. Where the gap between the two is the greatest

C. Where the two become equal

D. None of the above

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4

Which of the following formula determine the income elasticity of demand?:

A. Proportionate change in demand Proportionate change in price

B. Proportional change in the purchase of Y Proportional change in the price of X

C. Proportionate change in demand Proportionate change in income

D. Proportionate change in demand Proportionate change in price

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4

The number of sellers in duopoly is:

A. A few

B. Four

C. Two

D. Very large

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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 dominant strategies I am doing the best, I can no matter:

A. What you do

B. What you are doing

C. What you not do

D. None of them

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4

In monopolistic competition, the firm take advantage due to customers:

A. Similar choices

B. Unlimited choices

C. Differential choices

D. Few choices

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4

In centralized cartel, the firms are like:

A. Price takers

B. Price setters

C. Price discriminators

D. None of the above

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4

In case of monopoly:

A. MR

B. MR>AR

C. MR=AR

D. AR=0

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4

In case the two commodities are complements, cross elasticity will be:

A. Positive

B. Unitary

C. Negative

D. Infinite

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4

The Input-Output Analysis was originated by:

A. W.W. Leontief

B. E.D.Domar

C. R.G.D.Allen

D. J.M.Keynes

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4

Most of the supply curves with which the average consumer deals are:

A. Vertical

B. Horizontal

C. Controlled by the largest producers

D. Unaffected by inflation

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4

Marginal utility is only meant for:

A. Half utility

B. Full utility

C. Additional utility

D. Multiplied utility

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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

The Substitution Effect (S.E) is always:

A. Negative

B. Zero

C. Positive

D. Infinite

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4

The reaction curve of a firm is attained by joining the:

A. Isoprofit curve

B. Super profit curve

C. Normal profit curve

D. Indoprofit curve