Question:

If marginal revenue is Rs.25/- and elasticity of demand w.r.t price is 2, then the averagerevenue is

A.

50

B.

25

C.

75

D.

100

Answer» a. 50

Question:

For profit maxmisation we must have

A.

mr = mc

B.

mc curve cut mr curve from below

C.

both a and b

D.

none of these

Answer» c. both a and b

Question:

The inflexion points of the function y = x3 – 3×2 + 5 is at

A.

3

B.

6

C.

1

Answer» c. 1

Question:

If marginal revenue is Rs.25/- and elasticity of demand w.r.t price is 2, then theaverage revenue is

A.

50

B.

25

C.

75

D.

100

Answer» a. 50

Question:

The ratio of total cost to the quantity produced is called

A.

average cost

B.

marginal cost

C.

total variable cost

D.

none

Answer» a. average cost

Question:

The minimal value of the function y = x4 – 4×3 + 16x is at

A.

-1

B.

2

C.

-2

D.

1

Answer» b. 2

Question:

The output of a firm, with given prices of factors of production is decided so that the totalcost is

A.

maximum

B.

balanced

C.

minimum

D.

positive

Answer» d. positive

Question:

Cost is a function of

A.

price

B.

revenue

C.

quantity

D.

none of these

Answer» c. quantity

Question:

An example of fixed inputs of production is

A.

land

B.

organisation

C.

both a and b

D.

none of these

Answer» c. both a and b

Question:

The nature of tax multiplier is

A.

positive

B.

zero

C.

negative

D.

none

Answer» b. zero