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4

When a competitive firm is in equilibrium in the long-run, its output is such that:

A. Costs per unit of output are lowest

B. Total profits are highest

C. Marginal cost is lowest

D. Profit per unit of output is zero

Correct Answer :

A. Costs per unit of output are lowest


Related Questions

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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

Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price:

A. Equal to one

B. Greater than one

C. Smaller than one

D. Zero

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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 demand curve of giffen goods will be:

A. Negatively sloped

B. Positively sloped

C. Parallel to X-axis

D. None of the above

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4

Utility is:

A. A subjective concept

B. An ethical concept

C. An objective concept

D. A historical concept

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4

In the case of two factor inputs which are neither perfectly complementary nor perfect substitutes, the iso-product curve will be:

A. A downward sloping straight line

B. A downward sloping curve

C. An upward rising curve

D. Right angled iso-quants

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4

Which of the following is an implicit cost of production?

A. Wages of the labor

B. Charges of electricity

C. Interest on owned money capital

D. Payment for raw materials

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4

Theory of revealed preference is based on:

A. Weak orderings

B. Neutral orderings

C. Partial orderings

D. Strong orderings

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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

MC = MR = AC = AR shows the long run equilibrium position of the:

A. Competitive firm

B. Oligopolistic firm

C. Monopolist firm

D. None of the above

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4

Gold is bought and sold in a:

A. Perfectly competitive international market

B. Perfectly competitive national market

C. Imperfect international market

D. Imperfect national market

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4

In the short-run, in which one of the following situations would a competitive seller close down (shut-down)?

A. When he cannot produce at an economic profit

B. When price falls short of average variable cost at every level of output

C. When price falls short of average fixed cost at every level of output

D. When price falls short of average total cost at every level of output

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4

Each short run average cost curve:

A. Has to touch the long run cost curve

B. Has to cross the long run cost curve

C. Has to lie above all points on the long run cost curve

D. Coincides with the long run cost curve at some point

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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

With the change in the factor prices, the slope of the expansion path will:

A. Not change

B. Also change

C. Increase

D. Decrease

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4

Total utility:

A. Diminishes with increased consumption

B. Reflects the overall level of satisfaction of the consumer

C. Is directly related to the price the consumer is willing to pay for a good or service

D. Is independent of price changes

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4

Increase in demand occurs when:

A. The price falls and the demand also falls down

B. The price increases but demand falls down

C. The price increases the demand remains constant and when the price remains constant the demand goes up

D. The price remains constant but demand falls

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4

The short-run periods in monopolistic competition are:

A. Parallel to each other

B. Dependent upon each other

C. Independent of each other

D. Zero

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4

When the level of optimal factor combination is over and more labor is employed with the fixed plant, the efficiency of labor:

A. Increases

B. Decreases

C. Remains constant

D. Becomes zero

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4

Total costs in the short-term (short-run) are classified into fixed costs and variable costs. Which one of the following is a variable cost?

A. Cost of raw materials

B. Cost of equipment

C. Interest payment on past borrowing

D. Payment of rent on buildings

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7.In an economy based on the price system the decision on what shall be produced is made by:

A. Government

B. Consumer

C. Producer

D. Stock holder

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4

A monopolist has control over the price he charges for his product. He will be able to maximize his profit by:

A. Lowering the price, if the demand curve is elastic

B. Lowering the price, if the demand curve is inelastic

C. Rising the price, if the demand curve is elastic

D. None of the above is applicable

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4

When total revenues equal to total opportunity cost then the firm will earn:

A. Abnormal profit

B. Zero profit

C. Normal profit

D. Negative profit

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4

Supply of commodity is a:

A. A stock concept

B. A flow concept

C. Both stock and flow

D. None of the above

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4

Which is not a central problem of an economy?

A. What to produce

B. How to produce

C. How to maximize private profit

D. For whom to produce

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4

In arriving at stable equilibrium in cournot model, if one firm decreases output the other firm will:

A. Also decrease it

B. Increase it

C. Remain uneffected

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

The main contribution of Alfred Marshal is in the field of:

A. Research in mathematical economics

B. Economics of labor

C. Theory of production

D. Theory of demand

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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

In the theory of firm, Chamberline presented the idea of:

A. Rising cost

B. Falling cost

C. Rising input

D. Falling input