Assertion (A) All firms under perfect competition in long run earn only normal profit.Reason (R) All firms under perfect competition in long run operate at the minimum average cost level.
A. Both (A) and (R) are true
B. (A) is true, but (R) is not true
C. (A) is not true, but (R) is true
D. Both (A) and (R) are false
Select an option to see the answer and solution.
If college enrolments drop by 10% when textbook prices double; textbook and enrolments are . . . . . . . ., goods and their cross-price elasticity is . . . . . . . .
A. Complementary; -0.5
B. Substitutes; 5
C. Complementary; -0.1
D. Substitutes; 0.5
Select an option to see the answer and solution.
Which of the following is one of the basis for the indifference curve analysis?
A. Independent utility
B. Ordinal utility
C. Cardinal utility
D. Diminishing utility
Select an option to see the answer and solution.
What is the major export item among plantation crops?
A. Spices
B. Rubber
C. Tea
D. Coffee
Select an option to see the answer and solution.
In which type of market do you have the largest number of firms?
A. Perfect competition and oligopoly
B. Perfect competition and differentiated competition
C. Perfect competition and monopoly
D. Differentiated competition and oligopoly
Select an option to see the answer and solution.
If a firm's revenues just coverall its opportunity costs, then
A. Normal profit is zero
B. Economic profit is zero
C. Total revenues equal its explicit costs
D. Total revenues equal its implicit costs
Select an option to see the answer and solution.
Decreasing costs of production are due to-
A. internal economies exceeding internal diseconomies
B. external economies being greater than external diseconomies
C. internal economies being greater than external diseconomies
D. external economies
Select an option to see the answer and solution.
The mother of central economic problems is
A. Unlimited needs
B. Alternative use of resources
C. Scarcity
D. None of these
Select an option to see the answer and solution.
In the indifference curve/budget line diagram, the consumer reaches higher indifference curves when
A. Their budget decrease
B. The price of only the goods measured along Y-axis increases
C. The price of either good falls
D. The price of either good rises
Select an option to see the answer and solution.
The cost incurred in the past, and is not affected by a current decision is referred to as
A. Sunk cost
B. Marginal cost
C. Incremental cost
D. Replacement cost
Select an option to see the answer and solution.
The minimum Long Run Average Cost (LAC) can be determined on a
A. I, II, III
B. II, III, IV
C. I, III, IV
D. I, II, IV
Select an option to see the answer and solution.
Price under perfect competition will rise as the demand falls when the production is subject to
A. increasing returns to scale
B. constant returns to scale
C. decreasing returns to scale
D. none of these
Select an option to see the answer and solution.
1991 crisis in India economy was originated from:
A. Domestic sector
B. External sector
C. Both A and B
D. None of these
Select an option to see the answer and solution.
Which of the following statement is/are correct?
A. Only 1
B. Only 2
C. Both 1 and 2
D. Neither 1 nor 2
Select an option to see the answer and solution.
For a multi market seller the rule for optimisation is to equate-
A. average revenues from the separate market
B. marginal revenues from the separate market
C. total revenue from the separate market
D. marginal price of production for separate markets
Select an option to see the answer and solution.
When the first five year plan was started in India?
Select an option to see the answer and solution.
Which one of the following statements is an apt reflection of J. R. Hick's Indifference curve Analysis of demand?
A. Pareto's theory with Marshall's method
B. Pareto's theory with Pareto's method
C. Marshall's theory with Pareto's method
D. Marshall's theory with Marshall's method
Select an option to see the answer and solution.
When electronic markets permit prices to change faster even daily as a function of demand and supply then this practice is called:
A. competitive pricing
B. e-marketing pricing
C. yield management pricing
D. none of the above
Select an option to see the answer and solution.
If the demand curve of the firm is like to the demand curve of the industry, then the firm will be
A. Perfect competition
B. Monopoly
C. Oligopoly
D. Bicameral
Select an option to see the answer and solution.
Which equation is correct in the case of monopoly?
A. AR = MR
B. AR > MR
C. AR < MR
D. AR = MR = 0
Select an option to see the answer and solution.
