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4

The low cost price leader will charge:

A. higher prices

B. zero prices

C. lower prices

D. specific prices

Correct Answer :

C. lower prices


Related Questions

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4

Moving along an indifference curve leaves the consumer:

A. Better off

B. Worse off

C. Neither better nor worse off

D. None of the above

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4

When at a given price, the quantity supplied of a commodity is more than the quantity demanded, there will be:

A. An upward pressure on price

B. A downward pressure on price

C. Price will remain unaffected

D. All of the above

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4

Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw materials

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

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4

Two policy variables, product and selling activities in the theory of firm was introduced by:

A. Chamberline

B. Sraffa

C. Carl marx

D. Robinson

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4

Contraction of demand means:

A. Less quantity demanded at the same price

B. Less quantity demanded at a higher price

C. Less quantity demanded at a lower price

D. None of the above

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4

If a firm is producing output at a point where diminishing returns have set in, this means that:

A. Each additional unit of output will be more expensive to produce

B. Each additional unit of output will require increasing amount of inputs

C. Marginal product of the variable factor of production decreases as the quantity increases

D. All of the above

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4

Which of the following is not characteristic of perfect competition?

A. Freedom of entry and exit

B. Each seller is a price taker

C. Perfect information about prices

D. Heterogeneous products

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4

Utility means:

A. The want- satisfying power of a commodity

B. Usefulness of commodity

C. Eating of commodity

D. None of these

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4

Labor theory was firstly rejected by:

A. Adam Smith

B. Karl Marx

C. Ricardo

D. Pigou

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4

In Prisoner Dilemma, the best choice of strategy is:

A. Stable

B. Unstable

C. Negative

D. Neutral

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4

Under price discrimination, the buyers must:

A. Be similar

B. Not be similar

C. Equal

D. None of the above

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4

Rational economic behavior on the part of the consumer means that he will:

A. Save as much of his income as possible

B. Spend as much of his income as possible

C. Buy everything at the lowest possible price

D. Make wise choices among available economic goods

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4

We can obtain consumers demand curve from:

A. Income Consumption Curve (ICC)

B. Engels Curve

C. Price Consumption Curve (PCC)

D. Production Possibility Curve (PPC)

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4

Any straight line supply which cuts the x-axis will have:

A. Zero elasticity

B. An elasticity greater than one

C. Unitary elasticity of supply

D. An elasticity less than one

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4

An income demand curve of an inferior good is:

A. Upward sloping

B. Downward sloping

C. Constant in slope

D. None of the above

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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

The arc elasticity is the measure of average elasticity at the mid-point of the chord and connects:

A. Two points on demand curve

B. Two points on supply curve

C. Many points on demand curve

D. Many points on demand curve

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4

In modern theory, LAC = LMC after the attainment of:

A. Maximum optimal scale

B. Average optimal scale

C. Minimum optimal scale

D. None of the above

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4

In cournot model, each firm makes decision regarding:

A. Price

B. Output

C. Cost

D. Advertisement

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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

The marginal revenue of a perfectly competitive firm is:

A. Equal to the prices of its products

B. Positively related to output

C. Negatively related to output

D. Always higher than marginal cost

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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

The game theory concentrates on:

A. Gaming

B. Strategic decisions

C. Both a and b

D. None of the above

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4

Which of the following does not have a uniform elasticity of demand at all points?

A. A vertical demand curve

B. A horizontal demand curve

C. A rectangular hyperbola demand curve

D. A downward sloping demand curve

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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

When the slope of a demand curve is zero (also known as vertical demand curve) then elasticity will be:

A. Zero (perfectly inelastic)

B. Equal to one (unitary elastic)

C. Infinite (perfectly elastic)

D. None of the above

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4

An indifference curve normally slopes downward from:

A. Left to right

B. Right to left

C. Both of them

D. None of them

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4

When the consumer is in equilibrium not only his income is fully spent, but the ratio of marginal utility and price is:

A. Increased

B. Equalized

C. Prominent

D. Zero

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4

The least cost combination of factors x , y and z will generally be the point at which:

A. Price of x = Price of z Price of y Price of x

B. MP of x = MP of y Price of x Price of x

C. MP of x = MP of y = MP of z Price of x Price of y Price of z

D. MP of x = MP of y = MP of z

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4

Identify the author of The Social Framework:

A. R.G.D.Alien

B. J.R.Hicks

C. A.C.Pigou

D. None of the above