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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

Correct Answer :

C. Normal profit


Related Questions

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4

Identify the economist who first developed the theory of income determination in its modern form:

A. Paul A.Samuelson

B. J.M.Keynes

C. Joan Robinson

D. Dr.mehboob ul Haq

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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

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4

In case of monopoly, TR curve rises at a:

A. Constant rate

B. Decreasing rate

C. Increasing rate

D. None of the above

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4

In general, most of the production functions measure:

A. The productivity of factors of production

B. The relation between the factors of production

C. The economies of scale

D. The relations between change in physical inputs and physical output

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4

If the price of product A decreases and in the result the demand for product B increases then we can say that:

A. A and B are substitute goods

B. A and B are complementary goods

C. A is an inferior good

D. B is an inferior good

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4

Cardinal approach includes arranging:

A. The different combinations of X and Y higher and lower without actually measuring the difference of utility between them

B. The different combinations of X and Y higher and lower and measuring the difference of utility between them

C. Different combination of X, Y and Z

D. None of above

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4

Under which of the following forms of the market structure does a firm have no control over the price of its product?

A. Monopoly

B. Monopolistic competition

C. Oligopoly

D. Perfect competition

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4

Who wrote Mathematical Analysis for Economists?

A. J.P.Lewis

B. R.G.D.Allen

C. Paul A.Samuelson

D. E.D.Domar

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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

Loanable funds theory of Interest was developed by:

A. Wicksell

B. Robert San

C. Ruskin

D. J.B.Say

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4

For a few products such as insulin for diabetics,:

A. The demand curve can be upward sloping

B. The price elasticity of demand could be zero

C. The price elasticity of demand could be greater than one

D. None of the above

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4

Who formulated the Post-Keynsian Theory of Distribution and Growth?

A. J.M.Keynes

B. N.Kaldor

C. C.P.Kindleberger

D. Irving Fisher

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4

Implicit costs are the costs:

A. Which are not incurred by the firm and may accrue to the community

B. Of resources the cost of factors owned by the firm

C. Of resources supplied by the household

D. Of government externalities

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4

A shift in the demand for a product is likely to result from a change in:

A. The products price

B. Expectations

C. The prices of factors of production used to produced it

D. Production technology

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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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4

Demand for a commodity is elastic when it has

A. Only one use

B. Many uses

C. Uses which cannot be postponed

D. Uses very essential for the consumer

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4

If Cobb-Douglas production function is homogeneous of degree greater than one (n>1), then it shows:

A. Constant returns to scale

B. Increasing returns to scale

C. Decreasing returns to scale

D. None of the above

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4

The game theory takes into consideration:

A. Reaction of rival firms

B. Reactions of people

C. No reaction of rival firms

D. None of the above

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4

The competitive equilibrium leads to:

A. The firms producing with excess capacity

B. The firms producing at their minimum costs

C. Firms producing at a cost higher than the minimum

D. Some firms producing under decreasing costs and others under increasing costs

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4

If Cobb-Douglas production function is homogeneous of degree less than one (n<1), then it shows:

A. Constant returns to scale

B. Increasing returns to scale

C. Decreasing returns to scale

D. None of the above

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4

Marginal cost is found with the help of changes in:

A. Total cost or total variable cost

B. Total explicit cost

C. Total fixed cost

D. Total implicit cost

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4

Marginal Productivity Theory deals with the theory of:

A. Distribution

B. Exchange

C. Market structure

D. Consumer behaviour

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4

By increasing the price of its products above those of its competitors, a perfectly competitive seller:

A. Can sell more

B. Reduces its revenues

C. Can sell nothing

D. Increases its revenues

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4

The slope of an iso-quant represents:

A. MRS

B. MRT

C. MRTS

D. MRPS

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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

In first degree price discrimination, monopolist takes away :

A. All of the consumer surplus

B. All of the producer surplus

C. Some part of the consumer surplus

D. None of them

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4

If the production increases under decreasing returns to scale, the cost will:

A. Increase at decreasing rate

B. Increase at constant rate

C. Decrease at increasing rate

D. Increase at increasing rate

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4

In monopolistic competition, if a firm lowers its price, the rival firms will:

A. Also lower their prices

B. Increase their prices

C. Show no reaction

D. None of the above

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4

An income demand curve of an inferior good is:

A. Upward sloping

B. Downward sloping

C. Constant in slope

D. None of the above

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4

In monopolistic competition, the firms follow:

A. Exotic behavior

B. Sympathetic behavior

C. Myopia behavior

D. Regular behavior