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4

The reserve capacity in administration is advocated on the ground that demand for a product will:

A. Decrease in the future

B. Increase in the future

C. Remain constant

D. None of the above

Correct Answer :

B. Increase in the future


Modern economists are of the opinion that whenever a firm installs a plant, this plant should have some more capacity or reserve capacity to produce in addition to a specific level of output. On the basis of reserve capacity the producer can meet the seasonal and cyclical changes in the demand for his goods so that the demand for his goods may be rise in future. To meet this rise in demand the reserve capacity is necessary.}

Related Questions

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4

The slope of budget line shows the price ratios of:

A. Many goods

B. Few goods

C. Two goods

D. Three goods

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4

The main contribution of David Ricardo is in the field of:

A. Wages of labor

B. Factor pricing

C. Theory of rent

D. Determination of the rate of interest

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4

Identify the work of Irving Fisher:

A. Policy on trade

B. Policy against inflation

C. The making of index numbers

D. Labor theory

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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

Under monopoly and imperfect competition MC is:

A. More than the price

B. Less than the price

C. Equal to the price

D. Less than or equal to the price

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4

If the marginal utility is divided by the price of the commodity then it is called:

A. Real Marginal Utility

B. Gross Marginal Utility

C. Weighted Marginal Utility

D. Money Marginal Utility

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4

Market allocation fundamentally relies upon:

A. A system of relative prices

B. A belief that employees work for the good of society

C. Government ownership of the means of production

D. Moral incentives to encourage productive efficiency

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4

The general markets results from the imposition of price ceilings has been:

A. Higher prices

B. Increased prices

C. Increased consumption

D. Shortage of products

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4

When the output of a firm is increasing, its average fixed cost:

A. Declines continuously

B. Remains constant

C. Rises continuously

D. Declines and then rises

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4

Who is the author of Choice of Technique?

A. K.N.Raj

B. Amartiya Sen

C. A.C.Pigou

D. Alfred Marshal

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4

Total profits are maximized at the point where:

A. TR equals TC

B. The TR curve and the TC curve intersect such that TR and TC lie at the same point

C. The TR curve and the TC curve are parallel and TC exceeds TR

D. The TR curve and the TC curve are parallel and TR exceeds TC

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4

The production process is:

A. Consuming goods and services

B. Transforming inputs into outputs

C. Wasting goods and services

D. Buying goods and services

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4

Elasticity of demand is equal to unity while marginal revenue is:

A. Positive

B. Zero

C. Negative

D. Indeterminate

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4

A significant property of the Cobb-Douglas production function is that the elasticity of substitution between inputs is:

A. Greater than one

B. Less than one

C. Zero

D. Equal to one

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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

The goods sold by firms under monopolistic competition are technological as well as:

A. Economic complements

B. Economic substitutes

C. Economic inferiors

D. None of the above

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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 monopoly, new firms:

A. Can enter and exit

B. Partially can enter and exit

C. Cannot enter

D. None of the above

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4

When elasticity of demand is one (e=1), then following the formula MR=P[1-1/e], the MR will:

A. Positive

B. Negative

C. Zero

D. None of the above

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4

Consumers are likely to get a variety of similar goods under:

A. Monopoly

B. Perfect competition

C. Duopoly

D. Monopolistic competition

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4

The slope of marshallian demand curve is:

A. Upward

B. Vertical

C. Downward

D. Horizontal

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4

In cournot model, during the process of adjustment, the number of firms:

A. Donot change

B. Change

C. Both a and b

D. None of the above

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4

In Bertrand model, the entry of new firms is:

A. banned

B. allowed

C. partially allowed

D. none of the above

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4

Cross-elasticity of demand or cross-price elasticity between two complements will be:

A. Negative

B. Positive

C. Infinite

D. Zero

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4

Technological Progress (Invention) can be defined as:

A. Technological progress shifts the production function by allowing the firm to achieve more output from a given combination of inputs (or the same output with fewer inputs)

B. Technological progress shifts the production function by allowing the firm to achieve less output from a given combination of inputs (or the same output with more inputs)

C. Technological progress shifts the import function to the right

D. None of the above

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4

Which of the following is assumed to be constant when a supply curve is drawn:

A. Technology

B. Number of buyers in the market

C. Consumer income

D. Household tastes

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4

The Law of Equi-Marginal Utility states:

A.

B. per income rupee

C.

D.

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4

Production function relates:

A. Cost to input

B. Wages to profits

C. Cost to output

D. Inputs to output

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4

The Chamberline model recognizes mutual:

A. Independence of firms

B. Interdependence of firms

C. Independence of individuals

D. Interdependence of materials

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4

Discriminating monopoly implies that the monopolist charges different prices for his commodity:

A. From different groups of consumers

B. For different uses

C. At different places

D. Any of the above