The total revenue curve for monopolist is the shape of:
Circle
Rectangle
Parabola
None of the above
Correct Answer :
C. Parabola
For monopolist, to increase sales it must reduce price. Thus the total revenue curve for a monopolist is a parabola that begins at the origin and reaches a maximum value then continuously falls until total revenue is again zero. Total revenue reaches its maximum value when the slope of the total revenue function is zero. The slope of the total revenue function is marginal revenue.}
Related Questions
In cournot model, each firm makes decision regarding:
Price
Output
Cost
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On all points of budget (price) line:
Total expenditures increases
Total expenditures decreases
Total expenditures are zero
Total expenditures remain same
If the price of a product falls then quantity demanded tends to increase ceteris paribus because:
The MU/P ratio has decreased
Of the income and substitution effects
Consumers tend to feel poorer when prices fall
When price falls the demand curve shifts right
Cartel is associated with:
Collusive oligopoly
Non-collusive oligopoly
Cartel
Perfect competition
In discriminating monopoly (price discrimination), the elasticity of demand of product in two markets are:
Different
Same
Zero
None of the above
In case of income effect, the level of consumers satisfaction rises when:
Income rises
Income falls
Sales rises
Price falls
Monopolistic firm can fix:
Both price and output
Either price or output
Neither price nor output
None of the above
Whenever a group of monopolistic competitors attains equilibrium, the firms in this group usually:
Charge different prices, but produce identical outputs
Produce different outputs, but charge identical prices
Charge different prices, and produce different outputs
None of the above
An indifference curve slopes down towards right since more of one commodity and less of another result in:
Same satisfaction
Greater satisfaction
Maximum satisfaction
Decreasing expenditure
Which is not a central problem of an economy?
What to produce
How to produce
How to maximize private profit
For whom to produce
In monopolistic competition, the firm compete on the basis of:
Price
Entry
Both a and b
None of the above
A fall in demand for the product under monopolistic competition will likely result in:
A fall in price
A decrease in the number of firms in the long-run
A decrease in the output of each firm
All of the above
Because of selling costs, the demand curve of a firm shifts:
Downward
Upward
Horizontal
Straight line
An economic theory is :
An axiom
A proposition
A hypothesis
A tested hypothesis
The difference between laws of return and laws of return to scale is:
In case of laws of return, one factor of production is constant and other is variable while in laws of return to scale both factors of production are variable
In case of laws of return to scale, one factor of production is constant and other is variable while in laws of return, both factors of production are variable
Both a and b
None of the above
If the commodities X and Y are perfect complements then:
None of the above
To get more revenue, a Finance Minister impose tax on that commodity which has:
Inelastic demand
Elastic demand
Unit elasticity
Zero elasticity
An increase in the price of the good measured on the horizontal axis causes:
The budget line to get steeper
The budget line to shift parallel to the right
The indifference curve to shift up
The budget line to get flatter
The difference between average cost and average revenue is:
Total profit
Average profit
Net profit
Marginal profit
Price discrimination is undertaken with the aim of:
Increasing sales and maximizing profits
Reducing sales and raising prices
Minimizing cost and maximizing revenue
Serving the markets without earning profits
The act of producing the output from more than one plant is concerned with:
Monopoly
Multi-plant monopoly
Bilateral monopoly
Price discrimination
The production techniques are technically efficient:
Bellow the lower ridge line
Above the upper ridge line
Between the two ridge lines
On the upper ridge line
If two goods are perfect substitutes then IC will be:
Concave to the origin
Convex to the origin
Positively sloped
Negatively sloped
A maximin strategy:
Maximizes the minimum gain that can be earned
Maximizes the gain of one player, but minimizes the gain of the opponent
Minimizes the maximum gain that can be earned
None of the above
The number of sellers in oligopoly are:
Two
Many
Four
Very few
Micro economics is concerned with:
Product markets
Factor markets
Supply and demand
a, b and c
In Recardian theory of value, the stress has been made on:
Marginal cost
Production cost
Labor cost
Supply cost
Who wrote Mathematical Analysis for Economists?
J.P.Lewis
R.G.D.Allen
Paul A.Samuelson
E.D.Domar
In the theory of firm, Chamberline presented the idea of:
Rising cost
Falling cost
Rising input
Falling input
In second degree price discrimination, monopolist takes away :
All of the consumer surplus
All of the producer surplus
Some part of the consumer surplus
None of them