Comparing the equilibrium position of a buyer with that of a producer in a pefectly competitive market, it is found that in perfect competition
A. The price of a buyer is higher and the output is relatively higher than that of the producer
B. The price of a buyer is less than that of the producer and the output is relatively high
C. The price of a buyer is less as compared to the producer and the output is also relatively less
D. The price of a buyer is higher than that of the producer and the output is also relatively less
Answer: Option D
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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