Question:

If an additional worker costs you Rs. 15 per hour, and that person can add 25 units of output to the firm, you should hire that person as long as

A.

25 remains above rs.15

B.

25/rs.15 is greater than zero

C.

rs.15/25 is great than zero

D.

the value of the marginal product is above rs.15 …………………….

Answer» d. the value of the marginal product is above rs.15 …………………….

Question:

A nondiscriminating monopolist will find that marginal revenue:

A.

exceeds average revenue or price.

B.

is identical to price.

C.

is sometimes greater and sometimes less than price.

D.

is less than average revenue or price.

Answer» d. is less than average revenue or price.

Question:

At the best, or optimum, short-run level of output, the firm will be

A.

maximizing total profits

B.

minimizing total losses

C.

either maximizing total profits or minimizing total losses

D.

maximizing profits per unit.

Answer» c. either maximizing total profits or minimizing total losses

Question:

There is inverse relation between price and demand for the product of a firm under:

A.

Monopoly only

B.

Monopolistic competition only

C.

Both under monopoly and monopolistic competition

D.

Perfect competition only

Answer» c. Both under monopoly and monopolistic competition

Question:

A firm under monopolistic competition advertise because

A.

To compete successfully with rival

B.

To lower cost of production

C.

To increase revenue and sales

D.

Since it cannot raise price

Answer» c. To increase revenue and sales

Question:

In the case of a ‘token money’

A.

Face value is less than the metal value

B.

Face value is equal to the metal value

C.

Face value is greater than the metal value

D.

None of the above

Answer» c. Face value is greater than the metal value

Question:

In the short-period,

A.

All factors are fixed

B.

Some factors are fixed and others are variable

C.

All factors are variable

D.

None of the above

Answer» b. Some factors are fixed and others are variable

Question:

The Lerner Index is a measure of __________

A.

perfect competition

B.

monopoly power

C.

competition

D.

market

Answer» b. monopoly power

Question:

When demand curve is elastic, MR is

A.

1

B.

0

C.

Positive

D.

Negative

Answer» c. Positive

Question:

Third degree price discrimination occurs when the monopolist charges different prices forthe same commodity in different

A.

Markets

B.

places

C.

continents

D.

countries

Answer» a. Markets