Economics MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16

41.
The average total cost pf producing 50 units is Rs.250 and total fixed cost is Rs.1000. What is the average fixed cost of producing 100 units?

A. Rs.10

B. Rs.30

C. Rs.20

D. Rs.5

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42.
Under Marginal utility analysis, utility is assumed to be a

A. Cardinal concept

B. Ordinal concept

C. Indeterminate concept

D. None of the above

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43.
The 'substitution effect' takes place due to change in

A. Income of the consumers

B. Prices of the commodity

C. Relative prices of the commodities

D. All of the above

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44.
The degree of monopoly power is measured in terms of difference between

A. Marginal cost and the price

B. Marginal cost and average revenue

C. Marginal cost and average cost

D. Marginal revenue and average cost

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45.
Discriminating monopoly is possible if two markets have

A. Rising cost curves

B. Rising and declining cost curves

C. Different elasticity of demand

D. Equal elasticity of demand

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46.
Consumer's surplus left with the consumer under price discrimination is

A. Maximum

B. Minimum

C. Zero

D. Not predictable

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47.
In short run, a firm in monopolistic competition

A. Always earns profits

B. Incurs losses

C. Earns normal profit only

D. May earn normal profit, super normal profit or incur losses

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48.
In long-run, all firms in monopolistic competition

A. Earn supernormal profits

B. Earn normal profits

C. Incur losses

D. May earn normal profit, super normal profit or incur losses

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49.
In a perfectly competitive market

A. Firm is the price giver and industry the price taker

B. Firm is the price taker and industry the price giver

C. Both are price takers

D. None of the above

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50.
If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for

A. Coke will rise

B. 7-Up will decrease

C. Coke and 7-Up will increase

D. Coke and 7-Up will decrease

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Economics MCQ Questions and Solutions with Explanations | Commerce

41. The average total cost pf producing 50 units is Rs.250 and total fixed cost is Rs.1000. What is the average fixed cost of producing 100 units?

Answer & Solution

42. Under Marginal utility analysis, utility is assumed to be a

Answer & Solution

43. The 'substitution effect' takes place due to change in

Answer & Solution

44. The degree of monopoly power is measured in terms of difference between

Answer & Solution

45. Discriminating monopoly is possible if two markets have

Answer & Solution

46. Consumer's surplus left with the consumer under price discrimination is

Answer & Solution

47. In short run, a firm in monopolistic competition

Answer & Solution

48. In long-run, all firms in monopolistic competition

Answer & Solution

49. In a perfectly competitive market

Answer & Solution

50. If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for

Answer & Solution

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41.
The average total cost pf producing 50 units is Rs.250 and total fixed cost is Rs.1000. What is the average fixed cost of producing 100 units?

42.
Under Marginal utility analysis, utility is assumed to be a

43.
The 'substitution effect' takes place due to change in

44.
The degree of monopoly power is measured in terms of difference between

45.
Discriminating monopoly is possible if two markets have

46.
Consumer's surplus left with the consumer under price discrimination is

47.
In short run, a firm in monopolistic competition

48.
In long-run, all firms in monopolistic competition

49.
In a perfectly competitive market

50.
If the price of Pepsi decreases relative to the price of Coke and 7-Up, the demand for