According to M. Kalecki, the true measure of the degree of monopoly power is the
A. Ratio between price and marginal cost
B. Extent of monopolistic profit enjoyed by the monopolist
C. Cross-elasticity of demand for the product of the monopolist
D. Price charged by the monopolist minus marginal cost of production
Answer: Option A
Solution(By Examveda Team)
According to M. Kalecki, the true measure of the degree of monopoly power is the Ratio between price and marginal cost. Monopoly is the form of market organisation in which there is a single fir m selling a commodity for which there are no close substitutes.The capital that is consumed by an economy or a firm in the production process is known as
A. Capital loss
B. Production cost
C. Dead-weight loss
D. Depreciation
Who propounded the opportunity cost theory of international trade?
A. Ricardo
B. Marshall
C. Heckscher & Ohlin
D. Haberler
Which among the following statement is INCORRECT?
A. On a linear demand curve, all the five forms of elasticity can be depicted
B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.
C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.
D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.
A. Increase
B. Decrease
C. Remain the same
D. Become zero
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