Managerial Economics Page-6 section-2

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51.
In a . . . . . . . . the decisions of a central planner are replaced by the decisions of millions of firms and households, which answer will be suitable for the blank?

A. Market economy

B. Business economy

C. Social economy

D. Plant economy

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52.
To maximise profits during short run, a firm should produce the output that will

A. Maximise marginal revenue

B. Yield maximum total revenue

C. Minimise marginal cost

D. Equate marginal revenue with marginal cost

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53.
When the consumer's income increases, the budget line on an indifference map moves to

A. A parallel position to the right

B. A parallel position to the origin

C. A parallel position to the left

D. None of the above

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54.
The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs

Combination Output (units)

1L + 1K 200

2L + 2K 400

3L + 3K 600

4L + 4K 800

5L + 5K 1000

This table shows the

A. Constant returns to scale

B. Increasing returns to scale

C. Diminishing returns to scale

D. None of the above

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55.
As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases, but at a diminishing rate. This is

A. An economic law

B. A statement of fact

C. A hypothesis

D. None of the above

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56.
A firm may be considered to be of optimum size when

A. Its total cost and total revenue curve coincide

B. Its average cost is at a minimum

C. Its fixed and average costs are equal

D. It is faced with a horizontal demand curve

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57.
The positive cross elasticity of demand between two products means the two products are

A. substitutes

B. not related

C. complementary

D. none of these

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58.
At the point of producers equilibrium

A. $$\frac{{{\text{M}}{{\text{P}}_{\text{L}}}}}{{{{\text{P}}_{\text{L}}}}} = \frac{{{\text{M}}{{\text{P}}_{\text{K}}}}}{{{{\text{P}}_{\text{K}}}}}$$

B. The MRTS_LK equals $$\frac{{{\text{PL}}}}{{{\text{PK}}}}$$

C. The Iso-quant is tangent to the Iso-cost

D. All of the above

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59.
The following is the demand function: Q = 100 - 5P, What will be the point price elasticity of demand at price Rs. 10?

A. 2.00

B. 1.00

C. 0.85

D. 0.50

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60.
In general, most of the production functions measure

A. The economies of scale

B. The relation between the factors of production

C. The productivity of factors of production

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

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1 2 3 4 5 6 7 8 9 10

Combination	Output (units)
1L + 1K	200
2L + 2K	400
3L + 3K	600
4L + 4K	800
5L + 5K	1000

Managerial Economics

51. In a . . . . . . . . the decisions of a central planner are replaced by the decisions of millions of firms and households, which answer will be suitable for the blank?

Answer & Solution

52. To maximise profits during short run, a firm should produce the output that will

Answer & Solution

53. When the consumer's income increases, the budget line on an indifference map moves to

Answer & Solution

54. The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs Combination Output (units) 1L + 1K 200 2L + 2K 400 3L + 3K 600 4L + 4K 800 5L + 5K 1000 This table shows the

Answer & Solution

55. As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases, but at a diminishing rate. This is

Answer & Solution

56. A firm may be considered to be of optimum size when

Answer & Solution

57. The positive cross elasticity of demand between two products means the two products are

Answer & Solution

58. At the point of producers equilibrium

Answer & Solution

59. The following is the demand function: Q = 100 - 5P, What will be the point price elasticity of demand at price Rs. 10?

Answer & Solution

60. In general, most of the production functions measure

Answer & Solution

Read More Section(Managerial Economics)

51.
In a . . . . . . . . the decisions of a central planner are replaced by the decisions of millions of firms and households, which answer will be suitable for the blank?

52.
To maximise profits during short run, a firm should produce the output that will

53.
When the consumer's income increases, the budget line on an indifference map moves to

54.
The following table shows the various combinations of labour (L) and capital (K) and the resulting outputs

Combination Output (units)

1L + 1K 200

2L + 2K 400

3L + 3K 600

4L + 4K 800

5L + 5K 1000

This table shows the

55.
As a consumer increases his consumption of a commodity, the total utility he derives from its consumption increases, but at a diminishing rate. This is

56.
A firm may be considered to be of optimum size when

57.
The positive cross elasticity of demand between two products means the two products are

58.
At the point of producers equilibrium

59.
The following is the demand function: Q = 100 - 5P, What will be the point price elasticity of demand at price Rs. 10?

60.
In general, most of the production functions measure