Managerial Economics — Part 2 MCQs with Explanations

When there is a single producer without any close substitutes is the correct answer to “Pure monopoly exists”. This question is standard in competitive examination syllabi for Managerial Economics.

Both A and B is the correct answer to “The reasons for L shaped long run average cost curve is/are”. This question is standard in competitive examination syllabi for Managerial Economics.

Average total unit cost curve is the correct answer to “The general average curve is also known as”. This question is standard in competitive examination syllabi for Managerial Economics.

When slope is zero, demand is infinitely elastic; when slope is infinite, elasticity is zero is the correct answer to “Which of the following statement is correct about demand curve”. This question is standard in competitive examination syllabi for Managerial Economics.

a-1, b-2, c-3, d-4 is the correct answer to “Match the following: List-I (NNP) List-II (Formula) a. Personal Income 1. Private Income - Undistributed corporate profits - Profit Taxes b. Disposable Income 2. Personal Income - Direct Taxes c. NNP at factor cost 3. NNP at Market Prices - Indirect taxes + Subsidies d. NNP 4. GNP - Depreciation”. This question is standard in competitive examination syllabi for Managerial Economics.

negative marginal utility is the correct answer to “The falling part of a total utility curve shows”. This question is standard in competitive examination syllabi for Managerial Economics.

Equilibrium output and profits is the correct answer to “The imposition of a ceiling on a monopolist's price will affect his”. This question is standard in competitive examination syllabi for Managerial Economics.

Marginal Revenue, the change in total revenue when there is a change in quantity sold of the product is the correct answer to “MR n = TR n - TR n - 1 is the algebraic expression of”. This question is standard in competitive examination syllabi for Managerial Economics.

MC is the correct answer to “Whichis an inverted 'U' shaped curve”. This question is standard in competitive examination syllabi for Managerial Economics.

Observed consumer behaviour is the correct answer to “The Revealed Preference Theory is based on”. This question is standard in competitive examination syllabi for Managerial Economics.

Increase is the correct answer to “If the supply curve remains unchanged and the demand increases, the price will”. This question is standard in competitive examination syllabi for Managerial Economics.

Falling is the correct answer to “Marginal Utility (MU) curve is always”. This question is standard in competitive examination syllabi for Managerial Economics.

All of these is the correct answer to “Which one is the technique of measuring elasticity of demand”. This question is standard in competitive examination syllabi for Managerial Economics.

qualitative relationship between price and demand is the correct answer to “Law of demand implies”. This question is standard in competitive examination syllabi for Managerial Economics.

very good substitutes is the correct answer to “A high value of cross elasticity indicates that the two commodities are”. This question is standard in competitive examination syllabi for Managerial Economics.

uses scarce resources is the correct answer to “Government regulation is important because government”. This question is standard in competitive examination syllabi for Managerial Economics.

Stanton is the correct answer to “"Price is the amount of money and/or other item with utility needed to acquire a product", is given by”. This question is standard in competitive examination syllabi for Managerial Economics.

Average variable cost is rising is the correct answer to “If marginal cost is above average variable at a time when output is rising, then”. This question is standard in competitive examination syllabi for Managerial Economics.

(A) and (R) both are correct and (R) is the right explanation of (A) is the correct answer to “From the following two statements of Assertion (A) and Reason (R) suggest the correct option. Assertion (A) The equilibrium price is decided at the level where the quantity demanded equals the quantity supplied. Reason (R) At this level excess of demand and excess of supply both remain zero.”. This question is standard in competitive examination syllabi for Managerial Economics.

Combinations of two inputs which cost the same amount to a firm is the correct answer to “An Iso-cost line represents”. This question is standard in competitive examination syllabi for Managerial Economics.

Both statements are incorrect is the correct answer to “Statement I Costs which do not take the form of cash outlays, nor do they appear in the accounting system are known as opportunity cost. Statement II Costs in the form of depreciation allowances and unpaid interest on the owner's own funds are known as sunk cost.”. This question is standard in competitive examination syllabi for Managerial Economics.

An indifference curve relating the two goods will be linear is the correct answer to “If two goods are perfect substitutes for each other, it necessarily follows that”. This question is standard in competitive examination syllabi for Managerial Economics.

At a minimum is the correct answer to “Under perfect competition, a firm will be in equilibrium when its AC is”. This question is standard in competitive examination syllabi for Managerial Economics.

Both (A) is incorrect, but (R) is correct is the correct answer to “From the following two statements of Assertion (A) and Reasoning (R) , indicate the correct option. Assertion (A) The quantity of a product demanded invariably changes inversely to changes in its price. Reason (R) The price effect is the net result of the positive substitution effect and negative income effect.”. This question is standard in competitive examination syllabi for Managerial Economics.

The marginal product and average product is the correct answer to “When the average product is at its maximum, the equality can be reached between”. This question is standard in competitive examination syllabi for Managerial Economics.

Cannot be achieved is the correct answer to “Under perfect market and in case of decreasing marginal cost the firm's quilibrium with respect to level of production”. This question is standard in competitive examination syllabi for Managerial Economics.

Revealed preference theory is the correct answer to “Which of the following is most closely connected with Paul A. Samuelson”. This question is standard in competitive examination syllabi for Managerial Economics.

a-1, b-2, c-3, d-4 is the correct answer to “Match the following: List-I (Cost) List-II (Formula) a. Average fixed cost 1. $$\frac{{{\text{Total Fixed Cost}}}}{{{\text{Quantity}}}}$$ b. Average variable cost 2. $$\frac{{{\text{Total Variable Cost}}}}{{{\text{Quantity}}}}$$ c. Average total cost 3. $$\frac{{{\text{Total Cost}}}}{{{\text{Quantity}}}}$$ d. Marginal cost 4. $${\text{Total production}} + {\text{One addition production}}$$”. This question is standard in competitive examination syllabi for Managerial Economics.

a-4, b-3, c-2, d-1 is the correct answer to “Match the items given in List-I with those given in the List-II and suggest the correct option. List-I List-II a. Marginal productivity/Average productivity 1. Isoquant curve b. Substitutability of inputs 2. Isocost line c. Constant negative slope 3. Production Function d. Convex to origin 4. Elasticity of production”. This question is standard in competitive examination syllabi for Managerial Economics.

demand was perfectly inelastic is the correct answer to “If there were no changes in the quantity of goods demanded even when their prices fall, we understand that”. This question is standard in competitive examination syllabi for Managerial Economics.

Less than the price is the correct answer to “Under monopoly and imperfect competition, MC is”. This question is standard in competitive examination syllabi for Managerial Economics.

law of equi-marginal utility is the correct answer to “The term optimum allocation on consumer's expenditure on various goods and services is used in”. This question is standard in competitive examination syllabi for Managerial Economics.

Income consumption line is the correct answer to “The expansion path of production theory is analogous in consumption theory to the”. This question is standard in competitive examination syllabi for Managerial Economics.

More than one is the correct answer to “Marginal revenue will be positive if elasticity of demand is”. This question is standard in competitive examination syllabi for Managerial Economics.

67.92 is the correct answer to “The short run equilibrium condition gives following data: Equilibrium output = 30 P 1 (= AR 1 ) = 140 LAC = 72.08 Super normal profit will be”. This question is standard in competitive examination syllabi for Managerial Economics.

$${E_d} = \frac{{\frac{{\Delta Q}}{Q}}}{{\frac{{\Delta P}}{P}}}$$ is the correct answer to “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”. This question is standard in competitive examination syllabi for Managerial Economics.

Necessities is the correct answer to “Consumer's surplus is the highest in the case of”. This question is standard in competitive examination syllabi for Managerial Economics.

a-3, b-1, c-4, d-2 is the correct answer to “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”. This question is standard in competitive examination syllabi for Managerial Economics.

the maximin criterion is the correct answer to “A decision standard that selects the alternative with the best of the worst possible outcomes is”. This question is standard in competitive examination syllabi for Managerial Economics.

Catherin's demand schedule is the correct answer to “The demand schedule showing the quantity demanded at each price is known as”. This question is standard in competitive examination syllabi for Managerial Economics.