Tag: economics

Questions Related to economics

The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as _____________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. probability risk

  2. market risk

  3. inflation risk

  4. credit risk

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Correct Option: B

Change in TR due to the sale of an additional unit is termed _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. average revenue

  2. marginal revenue

  3. additional demand

  4. both B and C

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Correct Option: B

When the demand curve of a pure monopoly firm is elastic, marginal revenue will be _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. negative

  2. positive

  3. zero

  4. any of the above

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Correct Option: B

For a monopoly firm the marginal revenue curve _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. overlaps AR curve

  2. is above the AR curve

  3. lies half way between AR curve and the Y axis

  4. is parallel to X axis

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Correct Option: C

The marginal revenue curve of first degree price discriminating monopoly is __________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. U shaped

  2. straight line

  3. same as its supply curve

  4. equal to its demand curve

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Correct Option: D

Marginal revenue of a pure monopoly is less than its price because _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. to sell more it reduces prices

  2. fear of government intervention

  3. fear of losing customer base

  4. its commitment toward social justice

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Correct Option: A

Which of the following faces a downward sloping demand curve?

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. Firm in a competitive market

  2. Firm in a monopoly market

  3. Both (A) and (B)

  4. None of the above

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Correct Option: B

Average revenue of a monopolist firm is _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. always more than the marginal revenue

  2. always less than the marginal revenue

  3. equal to marginal revenue

  4. any of the above

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Correct Option: D

Profit maximization level of a Monopoly firm is ________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. where MC=MR

  2. MC=Price

  3. MR=Price

  4. none

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Correct Option: A

Which of the following statement is correct.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. in case of a Monopolistic firm there is no supply curve

  2. supply curve of a Monopolistic firm is downward sloping

  3. supply curve of a monopolistic firm is upward sloping

  4. supply curve of a monopolistic firm is a straight line

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Correct Option: A