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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

Correct Answer :

D. Minimum of average cost


Related Questions

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4

The total utility (TU) curve is:

A. Concave to X-axis

B. Convex to X-axis

C. Concave to Y-axis

D. Convex to Y-axis

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4

If a consumer buys a product that costs Rs.3 and provides an additional 18 units of satisfaction, then for this purchase:

A. Total utility will increase by 6 units

B. The marginal utility per rupee is 6

C. The consumer will buy more because marginal utility is positive

D. The consumer obtained an extra54 units

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4

If as a result of an increase in prices, total outlay (expenditures) on a commodity decreases, its price-elasticity of demand is:

A. Perfect elastic (infinitely elastic)

B. Relatively elastic (greater than one elasticity)

C. Unit elastic

D. Relatively inelastic (less than one elasticity)

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4

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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4

The firm is at equilibrium where:

A. Output is maximum

B. Profit is maximum

C. Revenues are maximum

D. Profit is minimum

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4

At the point where a straight line demand curve meets the quantity axis (x-axis), elasticity of demand is:

A. Equal to zero

B. Equal to one

C. Equal to infinite

D. More than one

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4

Microeconomics deals with the:

A. Allocation of resources of the economy as between production of different goods and services

B. Determination of prices of goods and services

C. Behavior of industrial decision makers

D. All of the above

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4

Identify the work of T.W.Schultz:

A. Transforming Traditional Agriculture

B. Productivity and Technical Change

C. Jobs, Poverty and the Green Revolution

D. Causes of Poverty

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4

The CES production function shows:

A. Decreasing return to scale

B. Increasing return to scale

C. Constant return to scale

D. None of the above

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4

The Hicksian indirect utility function in the form of equation is:

A. x =f(P)

B. x =a-bp

C.

D.

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4

Repetition of a game (Repeated Game):

A. Yields the same outcome over and over

B. Can result in behavior that is different from what it would be if the game were played once

C. Is not possible

D. Makes cooperative games into noncooperative games

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4

Which of the following formulae explain the term average revenue?

A. Total units /No. of Revenues

B. Total Revenue/No. of Units

C. Marginal Revenue × Units

D. Total Units/ Price

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4

Equilibrium of a discriminating monopolist requires the fulfillment of which one of the following conditions?

A. It must be profitable to him to sell output in more than one market

B. Marginal revenue in both markets must be the same

C. Marginal revenue in both markets must also be equal to the marginal cost of producing the monopolists aggregate output

D. All the above

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4

The relationship between MC and MP shown by the marginal cost concept is:

A. Inverse

B. Direct

C. Negative

D. Positive

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4

A budget line shows:

A. Price of commodity X in terms of Y

B. Price of commodity Y in term of X

C. Income of the consumer

D. All of the above

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4

Which of the following theories of trade cycle was presented by William Jevons?

A. Sunspot Theory

B. Monetary Theory

C. Saving-Investment Theory

D. Innovation Theory

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4

The cobweb model will divergent when the slope of:

A. Demand curve is more than supply curve

B. Supply curve is more than demand curve

C. Supply curve is equal to demand curve

D. None of the above

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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

In short run:

A. Labor is variable

B. Labor is fixed

C. Capital is variable

D. None of the above

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4

Engel curves shows that:

A. How commoditys consumption rate differs at various levels of price

B. How commoditys consumption rate differs at various levels of satisfaction

C. How commoditys consumption rate differs at various levels of income

D. How commoditys consumption rate differs at various levels of taxes

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4

Robbins definition of economics was criticised by:

A. Alfred Marshal

B. Adam Smith

C. J.B.Clark

D. Hicks, Longe and Durbin

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4

The firm producing at the minimum point of the AC curve is said to be:

A. Operating under diminishing cost

B. Making optimum use of plant capacity

C. Operating at excess capacity

D. Operating under increasing costs

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4

The Law of Equi-Marginal Utility refers to:

A. Marginal utility of commodity X

B. Marginal utility of commodity Y

C. Marginal utility per rupee spent on X and Y commodities

D. None of the above

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4

Who first used the term Quasi-Rent?

A. David Ricardo

B. Alfred Marshal

C. J.S.Mill

D. Karl Marx

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4

The production possibility curve (PPC) is concerned with:

A. Resources of the economy

B. Interests of the economy

C. Limitations of the economy

D. Qualities of the economy

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4

Identify the author of The Principles of political Economy and Taxation:

A. Alfred Marshal

B. J.S.Mill

C. David Ricardo

D. A.C.Pigou

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4

The study of economics just in theoretical way is called:

A. Positive Economics

B. Normative Economics

C. Micro Economics

D. Development Economics

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4

The budget constraint equation of the firm is:

A.

B.

C.

D.

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4

In microeconomics, we study:

A. Aggregates of the economy

B. Few units of the economy

C. Large units of the economy

D. Individual units of the economy

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4

If the commodity is inferior then the increase in income of the consumer results in:

A. More purchase

B. Less purchase

C. Same purchase

D. None of the above