61
In a monopoly market, an upward shift in the market demand results in a new equilibrium with
A)
A higher quantity and a lower price
B)
A higher quantity and the same price
C)
A higher quantity and higher price
D)
All the above
Answer & Solution
Answer: Option
D
62
A monopolist charging high price operates on
A)
The constant elastic part of a demand curve
B)
The inelastic part of a demand curve
C)
The elastic part of a demand curve
D)
Ignores elasticity of demand altogether
Answer & Solution
Answer: Option
B
63
An agreement among firms in a market about quantities to produce or prices to change is called
A)
collusion
B)
cartel
C)
monopoly
D)
oligopoly
Answer & Solution
Answer: Option
A
64
A loss bearing firm will continue to produce in the short run so long as the price at least covers
A)
Average variable costs
B)
Marginal costs
C)
AVC + AFC
D)
Average fixed costs
Answer & Solution
Answer: Option
A
65
Match the following:
List-I (Items of BEP) List-II (Formula)
a. BEP
1. $$\frac{{{\text{FC}}}}{{{\text{P/V Ratio}}}}$$
b. Contribution
2. Sales × P/V Ratio
c. Margin of safety
3. $$\frac{{{\text{Profit}}}}{{{\text{P/V Ratio}}}}$$
d. Calculation of changes in BEP if non-variable costs are increased/decreased
4. $$\frac{{{\text{Change in Non-variable Costs}}}}{{{\text{P/V Ratio}}}}$$
A)
a-4, b-3, c-1, d-2
B)
a-1, b-4, c-3, d-2
C)
a-1, b-2, c-3, d-4
D)
a-1, b-3, c-2, d-4
Answer & Solution
Answer: Option
C
66
"We are much better off when drawing purely imaginary indifference curves than we are when speaking of purely imaginary utility functions". This is remarked by
A)
J. R. Hicks
B)
Allen
C)
Schumpeter
D)
Paul A. Samuelson
Answer & Solution
Answer: Option
C
67
Increasing unemployment and inflation is a situation of`
A)
hyperinflation
B)
galloping inflation
C)
stagflation
D)
reflation
Answer & Solution
Answer: Option
C
68
In finding equilibrium position of a profit maximising firm, which technique is most convenient?
A)
Demand and supply technique
B)
Marginal revenue and marginal cost technique
C)
Total revenue and total cost technique
D)
None of these
Answer & Solution
Answer: Option
B
69
The Law of Diminishing Returns depends on the assumption that
A)
Land is the factor kept constant
B)
The state of technical knowledge is un changed
C)
Total output is constant
D)
Average output declines faster than mar ginal output
Answer & Solution
Answer: Option
B
70
The cost assigned to factors of production that the firm neither hires nor purchases is called
A)
Opportunity cost
B)
Social cost
C)
Economic cost
D)
Imputed cost
Answer & Solution
Answer: Option
D
