Question # 1

Duopoly is a market situation when there is

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Single seller

Many seller

Two seller

Few seller

The price elasticity of demand will increase with the length of the period to which the demand curve pertains because.

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Consumers incomes will increase

The demand curve will shift toward

All prices will increase over time

Consumers will be better able to find substitutes

When the quantity demanded is changed on the same price

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the demand curve shifts upward

The demand curve shifts downward

Movement on the same demand curve

None of these

The firms average variable cost of the 150th unit is.

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Rs.15

Rs.17

Rs.20

Rs.9

Suppose that the price elasticity of demand for maple syrup has been estimated at-2 if quantity demanded increased by 10 precent, price must have changed by.

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5 percent lower

5 percent higher

10 percent lower

10 percent higher

The largest source of tax revenue for the federal government is

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The prerenal income tax

The social security tax

the property tax

The sales tax

in monopolistic competition the firms desire to sell more output at the equilibrium because.

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Price is more than marginal cost

Price is less than marginal cost

Price is less than average cost

Price more than average cost

In order to constitute an oligopolistic market structure.

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There must be a few firms in a given relevant market

There must be a few firms selling in a national market

There must be more than 20 firms selling in the international market

There must be fewer than 15 firm is any given market

If a monopolist's has only fixed costs and chooses that output at which marginal cost equals price. it will

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Earn positive economic profits

Earn zero economic profits

Incur a loss equal to its variable costs

Incur a loss equal to its fixed costs

If the prices of both goods increase by the same percent the budget line will

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Shift parallel to the left

shift parallel to the right

Pivot about the x axis

Pivot abut the Y axis

Which of the policies in the table above an increase in social welfare according to pareto efficiency.

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Policy A

Polies A and B

Policies A and D

Policies C a, -d D

The total utility of the third unit of product x is.

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10

5

23

38

A monopoly there is

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No difference between firm and industry

A few firms

Lot of firms

none of these

The average total cost when 20 units of output are produced is

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Rs. 2,900

Rs.195

Rs. 20

Rs.900

When Daimler Benz maker of the Mercedes bought Chrysler the merger was

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Horizontal

Vertical

Conglomerate

None of these

If there is no price surprise, total output is.

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50

150

400

200

Marginal cost is the change is cost the result from a one unit increase in.

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Price

Cost

Output

Revenue

One of the following has more elastic demand.

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A commodity with substitutes

A commodity having more than one use

A commodity commonly use

None of these

If a monopolist faces a downward sloping market demand curve its.

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Average revenue is always less than marginal revenue

Marginal revenue is greeter than the price of the units it sells.

Average revenue is less than the price of its product.

Marginal revenue is always less than the price of the units it sells

When the price of a pizza decreased from 1200 Rupees to 1000 Rupees, it is definitely the case that the.

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Income effect means people buy less pizza

Substitution effect means people buy more pizza

Quantity demanded of pizza will not change

None of the above

If the demand curve for a good is downward sloping then the good must be.

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Normal

Inferior

Giffen

Either a or b

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