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4

The situation of single buyer and single seller is called:

A. Monopoly

B. Multi-plant monopolist

C. Bilateral monopoly

D. Price discrimination

Correct Answer :

C. Bilateral monopoly


Bilateral Monopoly ? A market that has only one supplier and one buyer. The one supplier will tend to act as a monopoly power, and look to charge high prices to the one buyer. The lone buyer will look towards paying a price that is as low as possible. Since both parties have conflicting goals, the two sides must negotiate to determine the price of the product.}

Related Questions

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4

Total utility and price are:

A. Directly related

B. Unrelated

C. Closely related

D. Negatively related

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4

Which of the following is not an explicit cost of production?

A. Wage of self-employed proprietor

B. Depreciation on machinery

C. Returns on owned capital

D. Cost of raw materials

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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

A decrease in demand lowers the price the most:

A. In the immediate run

B. In the short run

C. When the supply is perfectly elastic

D. When producers have sufficient time to fully adjust to the demand change

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4

In monopolistic competition, the individual demand curve is also known as:

A. Planned products curve

B. Planned material curve

C. Planned costs curve

D. Planned sales curve

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4

Excess capacity is not found under:

A. Monopoly

B. Monopolistic competition

C. Perfect competition

D. Oligopoly

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4

If the commodities X and Y are perfect complements then:

A.

B.

C.

D. None of the above

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4

The budget constraint equation of the firm is:

A.

B.

C.

D.

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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

In monopolistic competition, the cost curves of all firms are:

A. Uniform

B. Different

C. Dependent

D. Independent

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4

The Cambridge School of Thought refers to the group of English economists who came under the influence of:

A. Alfred Marshal

B. J.M.Keynes

C. Paul A.Samuelson

D. A.C.Pigou

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4

Production function shows:

A. Technical relationship between inputs and output

B. Profitability production

C. Relation between MR and MC

D. Relation between AR and AC

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4

Economics define technology as:

A. Societys knowledge of production

B. Applied science

C. Knowledge of science and mathematics

D. None of the above

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4

The expansion point is attained by joining:

A. Similar optimal combinations

B. Different optimal combinations

C. Both of them

D. None of them

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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

The supply curve would probably shift to the right if:

A. Resource( factors of production) used in production became more costly

B. The technology of production improves

C. Consumers income increased

D. Some sellers left the market

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4

In cournot model, at equuilibrium when MC = MR, the elasticity of demand is:

A. equal to one

B. zero

C. negative

D. equal to 2

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

A. Positive

B. Zero

C. Negative

D. Indeterminate

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The isoquant which are generated by CES (constant elasticity of substitution) production function are always:

A. Positively sloped

B. Negatively sloped

C. Concave to the origin

D. None of the above

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4

If the price of a product falls then quantity demanded tends to increase ceteris paribus because:

A. The MU/P ratio has decreased

B. Of the income and substitution effects

C. Consumers tend to feel poorer when prices fall

D. When price falls the demand curve shifts right

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Variable costs refer to:

A. Capital cost plus operating costs

B. Capital costs alone

C. Capital costs plus spill-over costs

D. Operating costs alone

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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

Price leadership is associated with:

A. Collusive oligopoly

B. Non-collusive oligopoly

C. Cartel

D. Perfect competition

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4

If in the long run, output increases in the same proportion as increase in all the input in the given proportion, this is known as:

A. Increasing returns to scale

B. Decreasing returns to scale

C. Constant returns to scale

D. Variable returns to scale

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4

One way the government can induce a monopolist to expand his output is by imposing:

A. A specific tax on the monopolists output

B. A price ceiling that make the monopolist lower his price

C. A price floor that make the monopolist raise his price

D. A heavy tax on the monopolists profit

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In discriminating monopoly (price discrimination), the elasticity of demand of product in two markets are:

A. Different

B. Same

C. Zero

D. None of the above

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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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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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Monopolistic firm can fix:

A. Both price and output

B. Either price or output

C. Neither price nor output

D. None of the above

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With which of the following concepts is the name of J.M.Keynes particularly associated?

A. Marginal propensity to consume

B. Marginal propensity to save

C. Liquidity preference

D. All of the above