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What is the correct answer?

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

Correct Answer :

A. Equal to the prices of its products


Related Questions

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4

Elasticity (E) expressed by the term, 8 >E>1, is:

A. Perfectly elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unitary elastic

D. Relatively inelasticity (less than one elasticity)

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4

Chamberline introduces the concept of:

A. V-shaped selling cost

B. U-shaped selling cost

C. V-shaped purchasing material

D. U-shaped purchasing material

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4

If both demand and supply were to increase then:

A. Quantity exchanged would fall and price would rise

B. Quantity exchanged and price would both fall

C. Quantity exchanged would rise and price might rise or fall

D. Quantity exchanged and price would both rise

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4

Cross-demand curve shows:

A. The effect of a change in price of X on its demand

B. The effect of a change in price of X on the demand for Y

C. The effect of a change in price of Y on its demand

D. None of the above

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4

The slope of indifference curve shows:

A. Income level

B. Satisfaction level

C. Marginal rate of substitution

D. Demand level

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4

MC is given by:

A. The slope of the TVC curve

B. The slope of the TVC curve but not the slope of the TC curve

C. The slope of the TC curve but not by the slope of the TVC curve

D. Either the slope of the TVC curve or the slope of the TC curve

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4

An exceptional demand curve is:

A. Downward sloping

B. Upward sloping

C. Horizontal straight line

D. Vertical straight line

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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

On all points of budget (price) line:

A. Total expenditures increases

B. Total expenditures decreases

C. Total expenditures are zero

D. Total expenditures remain same

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4

Under monopolistic competition, the products sold by the firms are:

A. Economic substitutes

B. Technical substitutes

C. Both a and b

D. None of the above

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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

Price elasticity of demand can be measured in the following way:

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

B. Change in quantity demanded of a commodity divided by change in price of that commodity

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

D. None of that commodity

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4

Price-taker firms:

A. Advertise to increase the demand for their product

B. Do not advertise, because most advertising is wasteful

C. Do not advertise because they can sell as much as they want at the current price

D. Who advertise will get more profits than those who do not

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4

All of the following curves are U-Shaped except:

A. The AVC curve

B. The AFC curve

C. The AC curve

D. The MC curve

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4

The utility function u = f(x) is based upon :

A. Two goods

B. Few goods

C. One good

D. Zero goods

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4

Economics is a:

A. Physical science

B. Social science

C. Natural science

D. Basic science

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4

There is no difference between fixed and variable factors in the:

A. Long run

B. Short run

C. Average run

D. None of the above

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4

Under conditions of perfect competition, price in the long-run is equal to:

A. Minimum of average variable cost

B. Minimum of marginal cost

C. Minimum of average fixed cost

D. Minimum of average cost

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4

An inferior good/ commodity is inferior for:

A. Every consumer

B. Most consumers

C. All consumers

D. Some consumers and not for others

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4

Extension (expansion) and contraction of demand are result of:

A. Change in consumers income

B. Change in consumers tastes

C. Change in price

D. None of the above

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4

J.R.Hicks was:

A. Neo-classical economist

B. Classical economist

C. Keynesian economist

D. Post-Keynesian economist

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4

The cost that a firm incurs in purchasing or hiring any factor of production is referred to as:

A. Explicit cost

B. Implicit cost

C. Variable cost

D. Fixed cost

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4

Ordinal approach includes arranging:

A. The different combinations of X and Y in any way the consumer wants

B. The different combinations of X and Y higher and lower and measuring the difference of utility between them

C. The different combinations of X and Y higher and lower and not measuring the difference of utility between them

D. None of above

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4

The output where TC = TR & AC = AR:

A. Break-even point

B. Load point

C. Shut-down point

D. Revenue cost point

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4

Price effect occurs on the higher IC in case of:

A. Slutsky approach

B. Hicksian approach

C. Marshallian approach

D. None of the above

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4

When total product falls:

A. MP is positive

B. MP is negative

C. MP is falling

D. MP is rising

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4

Who introduced the concept of Elasticity of Demand into economic theory?

A. Alfred Marshal

B. Adam Smith

C. Karl Marx

D. George Stigler

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4

The game theory was basically presented by:

A. Ricardo

B. Marshal

C. Neomann and Morgenstern

D. Karl Marx

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4

Moving down along a linear demand curve:

A. Demand becomes less elastic

B. Elasticity does not change

C. Demand has unitary elasticity

D. Demand becomes more elastic

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4

Monopoly means:

A. Where there is no retail trade and every thing is sold on wholesale basis

B. Where trading of a particular commodity is controlled exclusively by one firm

C. Where many people sell only one commodity

D. A form of business organization in which only single proprietorship exists