Managerial Economics

71

If there were no changes in the quantity of goods demanded even when their prices fall, we understand that

A) demand was perfectly inelastic B) demand was elastic C) demand was unit elastic D) demand was more elastic than one

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Answer & Solution

Answer: Option A

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72

The AR curve and industry demand curve are same in case of

A) pure oligopoly B) perfect competition C) monopolistic competition D) monopoly

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Answer & Solution

Answer: Option D

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73

Under monopoly and imperfect competition, MC is

A) Equal to the price B) Less than the price C) More than the price D) Anyone of the above

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Answer & Solution

Answer: Option B

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74

The term optimum allocation on consumer's expenditure on various goods and services is used in

A) giffen paradox B) law of demand C) law of diminishing MU D) law of equi-marginal utility

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Answer & Solution

Answer: Option D

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75

The expansion path of production theory is analogous in consumption theory to the

A) Engel curve B) Price consumption line C) Income consumption line D) Budget constraint line

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Answer & Solution

Answer: Option C

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76

Marginal revenue will be positive if elasticity of demand is

A) Equal to one B) More than one C) Less than one D) Equal to zero

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Answer & Solution

Answer: Option B

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77

The short run equilibrium condition gives following data:
Equilibrium output = 30
P₁ (= AR₁ ) = 140
LAC = 72.08
Super normal profit will be

A) 67.92 B) 70.42 C) 67 D) All of these

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Answer & Solution

Answer: Option A

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78

In case the price (P), quantity (Q), and changes (?) are represented by respective symbols given in the brackets, the price elasticity ofdemand (Ed) is measured by

A) $${E_d} = \frac{{\Delta Q}}{{\Delta P}}$$ B) $${E_d} = \frac{{\frac{{\Delta Q}}{Q}}}{{\frac{{\Delta P}}{P}}}$$ C) $${E_d} = \frac{{\Delta P}}{{\Delta Q}}$$ D) $${E_d} = \frac{{\frac{{\Delta P}}{P}}}{{\frac{{\Delta Q}}{Q}}}$$

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Answer & Solution

Answer: Option B

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79

Consumer's surplus is the highest in the case of

A) Necessities B) Luxuries C) Comforts D) Conventional necessities

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Answer & Solution

Answer: Option A

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80

Indicate the correct option matching the items in List-I with those in List-II as follows.

List-I	List-II
a. Competitive partity in advertising	1. Variations in advertising
b. Promotional elasticity of product	2. Advertising scheduling
c. Optimal promotion mix	3. Advertising expenditure
d. Pulsing advertising	4. Marginal equivalence of advertising media outlay

A) a-2, b-3, c-1, d-4 B) a-3, b-1, c-4, d-2 C) a-1, b-4, c-2, d-3 D) a-4, b-2, c-3, d-1

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Answer & Solution

Answer: Option B

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