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Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.- a)Rs. 3,75,000
- b)Rs. 2,75,000
- c)Rs. 3,50,000
- d)Rs. 2,50,000
Correct answer is 'A'. Can you explain this answer?
Calculate Purchase on Investment. The information is Opening balance of Investment – Rs. 2,50,000, closing balance Investment – Rs. 5,00,000, Sale – Rs.1,37,500, Profit on sale – Rs.12,500.
a)
Rs. 3,75,000
b)
Rs. 2,75,000
c)
Rs. 3,50,000
d)
Rs. 2,50,000
|
Rithika Khanna answered |
Purchase of investment during the year Rs.3,75,000 i.e. 5,00,000 + 1,37,500 – 2,50,000 – 12,500 = 3,75,000
What is the other name for opportunity cost in economics- a)Total Cost
- b)Marginal cost
- c)Economic cost
- d)Economic problem
Correct answer is option 'C'. Can you explain this answer?
What is the other name for opportunity cost in economics
a)
Total Cost
b)
Marginal cost
c)
Economic cost
d)
Economic problem
|
Aryan Khanna answered |
Economic cost is the combination of losses of any goods that have a value attached to them by any one individual. Economic cost is used mainly by economists as means to compare the prudence of one course of action with that of another.
A budget constraint line is a result of?- a)Market price of commodity X
- b)Market price of commodity Y
- c)Income of the consumer
- d)All of above
Correct answer is option 'A'. Can you explain this answer?
A budget constraint line is a result of?
a)
Market price of commodity X
b)
Market price of commodity Y
c)
Income of the consumer
d)
All of above
|
Poonam Reddy answered |
A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices.
An economy always produces on, but not inside a PPC.
- a)True
- b)False
- c)Occasionally
- d)Can’t say
Correct answer is option 'B'. Can you explain this answer?
An economy always produces on, but not inside a PPC.
a)
True
b)
False
c)
Occasionally
d)
Can’t say
|
|
Alok Mehta answered |
An economy does not always on a ppc . when an economy produces on ppc it mean there is no unemployment and all the resources are fully and being used efficiently but practically these 2 conditions may not apply . if there is unemployment or inefficent use of resources an ecnmy will opreate inside the ppc therefor the above given statement is refuted .
The want satisfying power of a commodity is known as:- a)Utility
- b)Consumption
- c)Supply
- d)Demand
Correct answer is option 'A'. Can you explain this answer?
The want satisfying power of a commodity is known as:
a)
Utility
b)
Consumption
c)
Supply
d)
Demand
|
|
Aryan Khanna answered |
The want satisfying power of a commodity is called utility. It is a quality possessed by a commodity or service to satisfy human wants. Utility can also be defined as value-in-use of a commodity because the satisfaction which we get from the consumption of a commodity is its value-in-use.
According to the law of diminishing marginal utility, _________?- a)Additional consumption always yields extra utility
- b)Additional consumption leads to lower average total utility
- c)Additional consumption always yields negative utility
- d)After a point any addition in the consumption causes a reduction in total utility.
Correct answer is option 'D'. Can you explain this answer?
According to the law of diminishing marginal utility, _________?
a)
Additional consumption always yields extra utility
b)
Additional consumption leads to lower average total utility
c)
Additional consumption always yields negative utility
d)
After a point any addition in the consumption causes a reduction in total utility.
|
|
Priya Patel answered |
According to the Law of Diminishing Marginal Utility, marginal utility of a good diminishes as an individual consumes more units of a good. In other words, as a consumer takes more units of a good, the extra utility or satisfaction that he derives from an extra unit of the good goes on falling.
It should be carefully noted that is the marginal utility and not the total utility than declines with the increase in the consumption of a good. The law of diminishing marginal utility means that the total utility increases but at a decreasing rate.
____________ is an ideal market?- a)Monopolistic competition
- b)Oligopoly
- c)Perfect competition
- d)Monopoly
Correct answer is option 'C'. Can you explain this answer?
____________ is an ideal market?
a)
Monopolistic competition
b)
Oligopoly
c)
Perfect competition
d)
Monopoly
|
Vikas Kapoor answered |
Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.
Can you explain the answer of this question below:Indifference curve represents?
- A:
Four commodities
- B:
Less than two commodities
- C:
Only two commodities
- D:
More than two commodities
The answer is C.
Indifference curve represents?
Four commodities
Less than two commodities
Only two commodities
More than two commodities
|
|
Alok Mehta answered |
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility.
Which of the following curve has a negative slope and cannot interest each other?- a)Isoquants
- b)Demand and supply curves
- c)Indifference curves
- d)None of above
Correct answer is option 'C'. Can you explain this answer?
Which of the following curve has a negative slope and cannot interest each other?
a)
Isoquants
b)
Demand and supply curves
c)
Indifference curves
d)
None of above
|
|
Vikas Kapoor answered |
An indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
The coefficient of price elasticity of demand is always- a)Zero
- b)Undefined
- c)Positive
- d)Negative
Correct answer is option 'D'. Can you explain this answer?
The coefficient of price elasticity of demand is always
a)
Zero
b)
Undefined
c)
Positive
d)
Negative
|
Jayant Mishra answered |
This ratio is often called the elasticity c
Opportunity cost is the- a)Next best alternative sacrificed
- b)Next best alternative chosen
- c)Next best alternative available
- d)Next best alternative produced
Correct answer is option 'A'. Can you explain this answer?
Opportunity cost is the
a)
Next best alternative sacrificed
b)
Next best alternative chosen
c)
Next best alternative available
d)
Next best alternative produced
|
Knowledge Hub answered |
“Opportunity cost” of a resource, means the value of the next-highest-valued alternative use of that resource.
E.g. you spend time and money going to a movie, you cannot spend that time at home playing video games, and you cannot spend the money on something else. If your next-best alternative to seeing the movie is playing video games at home, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not playing videos game at home.
E.g. you spend time and money going to a movie, you cannot spend that time at home playing video games, and you cannot spend the money on something else. If your next-best alternative to seeing the movie is playing video games at home, then the opportunity cost of seeing the movie is the money spent plus the pleasure you forgo by not playing videos game at home.
Cartels exist ina) Monopolyb) Duopolyc) Oligopolyd) Perfect Competition
Correct answer is option 'C'. Can you explain this answer?
Correct answer is option 'C'. Can you explain this answer?
|
Kavita Joshi answered |
A cartel is a grouping of producers that work together to protect their interests. Cartels are created when a few large producers decide to co-operate with respect to aspects of their market. Once
In the long run TPP changes with the change in which of the following factors- a)Fixed factors
- b)Variable factors
- c)Economic cost
- d)All the factors
Correct answer is option 'D'. Can you explain this answer?
In the long run TPP changes with the change in which of the following factors
a)
Fixed factors
b)
Variable factors
c)
Economic cost
d)
All the factors
|
Ishan Choudhury answered |
In the long run TPP changes with the change in all the factors is the right option because total product can be change in long run production function. After change every situation because in long run production more time should be taken by performer.
Can you explain the answer of this question below:This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
- A:
It helps consumers to make choices.
- B:
Utility is always measurable.
- C:
It is a satisfying power of a commodity.
- D:
It is purely a subjective entity.
The answer is B.
This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Theory of Consumer Behaviour of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following statements regarding utility is not true?
It helps consumers to make choices.
Utility is always measurable.
It is a satisfying power of a commodity.
It is purely a subjective entity.
|
Priyanka Ravichandran answered |
B is the correct answer because utility is nothing but human satisfaction so it can't be measured
Utility is measured in terms of?- a)Centimeter
- b)Seconds
- c)Gram
- d)Utils
Correct answer is option 'D'. Can you explain this answer?
Utility is measured in terms of?
a)
Centimeter
b)
Seconds
c)
Gram
d)
Utils
|
|
Alok Mehta answered |
It can be seen that utility is measured in numbers that are purely cardinal, rather than ordinal. The numbers used to measure utility (often in a unit called the "util") is useful only for comparison.
Total utility curve:- a)First falls and then rises
- b)Always falls
- c)Always rises
- d)First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
Correct answer is option 'D'. Can you explain this answer?
Total utility curve:
a)
First falls and then rises
b)
Always falls
c)
Always rises
d)
First rises at an increasing rate, then rises at a decreasing rate and falls after reaching its maximum.
|
|
Ishan Choudhury answered |
MU decrease then TU increases at decreasing rate till MU becomes zero. when MU zero then TU maximum and when MU gets negative TU starts fall
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?- a)Consumer surplus
- b)Price gap
- c)Consumer burden
- d)Optimum price
Correct answer is option 'A'. Can you explain this answer?
_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
a)
Consumer surplus
b)
Price gap
c)
Consumer burden
d)
Optimum price
|
Devansh Goyal answered |
The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good. The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept. For producers, a surplus can be thought of as profit, because producers usually don't want to produce at a loss. The two together create an economic surplus.
Under monopoly form of market, TR is maximum when- a)MR is maximum
- b)MR<0
- c)MR>0
- d)MR is zero
Correct answer is option 'D'. Can you explain this answer?
Under monopoly form of market, TR is maximum when
a)
MR is maximum
b)
MR<0
c)
MR>0
d)
MR is zero
|
|
Aryan Khanna answered |
Marginal revenue means additional revenue generate/received from the sale of additional unit of output.In imperfect (monopoly) when TR increases MR decreases , when TR become maximum MR reaches to zero.
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Theory of Firm Under Perfect Competition of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Condition for producer equilibrium is:- a)TC=TSC
- b)MC=MR
- c)TR=TVC
- d)None of above
Correct answer is 'B'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 4 - Theory of Firm Under Perfect Competition of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Condition for producer equilibrium is:
a)
TC=TSC
b)
MC=MR
c)
TR=TVC
d)
None of above
|
Puja Nambiar answered |
Condition for Producer Equilibrium
The producer equilibrium is a situation where a firm is maximizing its profits by producing a level of output where marginal cost (MC) is equal to marginal revenue (MR). In other words, the producer equilibrium is reached when a firm is producing at the point where it is making the highest possible economic profit.
The condition for producer equilibrium is as follows:
MC = MR
Explanation
Marginal cost (MC) is the additional cost of producing one more unit of output. Marginal revenue (MR) is the additional revenue earned by selling one more unit of output. In perfect competition, a firm is a price taker, meaning it cannot influence the market price of the product it sells. Therefore, the price of the product remains constant for the firm.
In perfect competition, the firm's marginal revenue (MR) is equal to the price of the product. Therefore, the condition for producer equilibrium can be rephrased as:
MC = P
where P is the price of the product.
If a firm produces at a level where MC is less than MR, it means that the firm can increase its profits by producing more units of output. Similarly, if a firm produces at a level where MC is greater than MR, it means that the firm can increase its profits by producing fewer units of output. So, the producer equilibrium is reached only when MC is equal to MR, where the firm is producing the level of output that maximizes its profits.
Conclusion
The condition for producer equilibrium is MC = MR, where a firm is producing the level of output that maximizes its profits. In perfect competition, where a firm is a price taker, the condition can be rephrased as MC = P.
The producer equilibrium is a situation where a firm is maximizing its profits by producing a level of output where marginal cost (MC) is equal to marginal revenue (MR). In other words, the producer equilibrium is reached when a firm is producing at the point where it is making the highest possible economic profit.
The condition for producer equilibrium is as follows:
MC = MR
Explanation
Marginal cost (MC) is the additional cost of producing one more unit of output. Marginal revenue (MR) is the additional revenue earned by selling one more unit of output. In perfect competition, a firm is a price taker, meaning it cannot influence the market price of the product it sells. Therefore, the price of the product remains constant for the firm.
In perfect competition, the firm's marginal revenue (MR) is equal to the price of the product. Therefore, the condition for producer equilibrium can be rephrased as:
MC = P
where P is the price of the product.
If a firm produces at a level where MC is less than MR, it means that the firm can increase its profits by producing more units of output. Similarly, if a firm produces at a level where MC is greater than MR, it means that the firm can increase its profits by producing fewer units of output. So, the producer equilibrium is reached only when MC is equal to MR, where the firm is producing the level of output that maximizes its profits.
Conclusion
The condition for producer equilibrium is MC = MR, where a firm is producing the level of output that maximizes its profits. In perfect competition, where a firm is a price taker, the condition can be rephrased as MC = P.
Which of the following utility approach is based on the theory of Alfred Marshall?- a)Independent variable approach
- b)Cardinal utility approach
- c)Ordinal utility approach
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which of the following utility approach is based on the theory of Alfred Marshall?
a)
Independent variable approach
b)
Cardinal utility approach
c)
Ordinal utility approach
d)
None of these
|
|
Ishan Choudhury answered |
The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on. Here, one Util is equivalent to one rupee and the utility of money remains constant.
The firm and the industry are one and the same in:- a)Monopolistic competition
- b)Monopoly
- c)Duopoly
- d)Oligopoly
Correct answer is option 'B'. Can you explain this answer?
The firm and the industry are one and the same in:
a)
Monopolistic competition
b)
Monopoly
c)
Duopoly
d)
Oligopoly
|
|
Priya Patel answered |
A type of market structure, where the firm has absolute power to produce and sell a product or service having no close substitutes. In simple terms, monopolised market is one where there is a single seller, selling a product with no near substitutes to a large number of buyers. As the firm and industry are one and the same thing in the monopoly market, so it is a single-firm industry. There is zero or negative cross elasticity of demand for a monopoly product. Monopoly can be found in public utility services such as telephone, electricity and so on.
The concept of marginal utility was developed by?- a)Paul Samuelson
- b)Alfred Marshall
- c)Hicks & Allen
- d)Robbins
Correct answer is option 'B'. Can you explain this answer?
The concept of marginal utility was developed by?
a)
Paul Samuelson
b)
Alfred Marshall
c)
Hicks & Allen
d)
Robbins
|
|
Aryan Khanna answered |
The concept of marginal utility grew out of attempts by economists to explain the determination of price. The term “marginal utility”, credited to the Austrian economist Friedrich von Wieser by Alfred Marshall, was a translation of Wieser's term “Grenznutzen” (border-use).
At what point does total utility starts diminishing?- a)When marginal utility remains constant
- b)When marginal utility is increasing
- c) When marginal utility is negative
- d)When marginal utility is negative
Correct answer is option 'D'. Can you explain this answer?
At what point does total utility starts diminishing?
a)
When marginal utility remains constant
b)
When marginal utility is increasing
c)
When marginal utility is negative
d)
When marginal utility is negative
|
|
Kiran Mehta answered |
The law of diminishing marginal utility is a law of economics stating that as a person in creases consumption of a products while keeping consumption of other product costant , there is a decline in the marginal utility that persob derives from consuming each additional unit of product.
Consumer’s surplus is also known as?- a)Buyer’s surplus
- b)Elasticity of demand
- c)Differential surplus
- d) Indifference surplus
Correct answer is option 'A'. Can you explain this answer?
Consumer’s surplus is also known as?
a)
Buyer’s surplus
b)
Elasticity of demand
c)
Differential surplus
d)
Indifference surplus
|
|
Arun Khanna answered |
Consumer surplus is defined as the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e. the market price) it is also known as buyer 's surplus.
Price discrimination can take place only in- a)Perfect competition
- b)Oligopoly
- c)Monopolistic competition
- d)Monopoly
Correct answer is option 'D'. Can you explain this answer?
Price discrimination can take place only in
a)
Perfect competition
b)
Oligopoly
c)
Monopolistic competition
d)
Monopoly
|
|
Pooja Kumari answered |
Monopoly.... ... A discriminating monopoly is a single entity that charges different prices—typically, those that are not associated with the cost to provide the product or service—for its products or services for different consumers. Non-discriminating monopolies, on the other hand, do not engage in such a practice
The slope of price line throughout its length?- a)Remains the same
- b)Is equal on the other side of the mid points
- c)Differs from point to point
- d)None of above
Correct answer is option 'A'. Can you explain this answer?
The slope of price line throughout its length?
a)
Remains the same
b)
Is equal on the other side of the mid points
c)
Differs from point to point
d)
None of above
|
|
Ishan Choudhury answered |
This is because in perfect competition , price line is a straight line. And the ratio (∆TR/∆Q )That is change in total revenue and change in output is constant.{MR=AR}So slope of a straight line is always constant.
One of the characteristics of economic resource is scarcity. Which is the other?- a)They have alternate uses
- b)They are available in limited quantity
- c)They are in abundance
- d)They are not marketable
Correct answer is option 'A'. Can you explain this answer?
One of the characteristics of economic resource is scarcity. Which is the other?
a)
They have alternate uses
b)
They are available in limited quantity
c)
They are in abundance
d)
They are not marketable
|
|
Priyanka Ravichandran answered |
Economics is scracity because they have alternative uses... It is the important characteristics of economy
Under which market condition firms make only Normal Profit in the long run?- a)Oligopoly
- b)Monopoly
- c)Monopolistic competition
- d)Duopoly
Correct answer is option 'C'. Can you explain this answer?
Under which market condition firms make only Normal Profit in the long run?
a)
Oligopoly
b)
Monopoly
c)
Monopolistic competition
d)
Duopoly
|
Nandini Iyer answered |
In the long-run, the demand curve of a firm in a monopolistic competitive
Marginal Revenue is- a)Same as total revenue
- b)Addition to the total revenue on the production of an additional unit of Output
- c)Addition to the total revenue on the sale of an additional unit of Output
- d)Additional cost involved in production
Correct answer is option 'C'. Can you explain this answer?
Marginal Revenue is
a)
Same as total revenue
b)
Addition to the total revenue on the production of an additional unit of Output
c)
Addition to the total revenue on the sale of an additional unit of Output
d)
Additional cost involved in production
|
Simran Mishra answered |
**Marginal Revenue: Addition to the total revenue on the sale of an additional unit of Output**
Marginal revenue is a concept used in economics to describe the additional revenue generated from the sale of one additional unit of output or product. It is the change in total revenue that occurs as a result of producing and selling one more unit of a product.
**Explanation:**
Marginal revenue is calculated by dividing the change in total revenue by the change in the quantity of output sold. It represents the increase in revenue that a firm earns when it sells one more unit of output.
To understand this concept, let's consider an example of a company that sells smartphones. Suppose the company sells its smartphones for $500 each, and it sells 1000 units in a month, resulting in a total revenue of $500,000. Now, if the company decides to produce and sell one more smartphone, it would have to adjust its price to attract buyers. Let's assume the company reduces the price to $400 for the additional unit.
In this case, the marginal revenue for the additional unit would be $400 because that is the amount of revenue generated from the sale of that unit. The total revenue after selling 1001 units would be $500,000 + $400 = $500,400. Therefore, the marginal revenue for the additional unit is $400.
It is important to note that marginal revenue can vary depending on the market conditions, demand for the product, and the pricing strategies employed by the firm. In some cases, marginal revenue may be positive, indicating an increase in revenue from selling an additional unit. However, in certain situations, such as when the market is highly competitive, marginal revenue may be negative, indicating a decrease in revenue from selling an additional unit.
Overall, marginal revenue is a crucial concept for businesses as it helps them determine the optimal level of production and pricing strategies to maximize their profits. By understanding the change in revenue associated with each additional unit of output, firms can make informed decisions regarding their production and pricing policies.
Marginal revenue is a concept used in economics to describe the additional revenue generated from the sale of one additional unit of output or product. It is the change in total revenue that occurs as a result of producing and selling one more unit of a product.
**Explanation:**
Marginal revenue is calculated by dividing the change in total revenue by the change in the quantity of output sold. It represents the increase in revenue that a firm earns when it sells one more unit of output.
To understand this concept, let's consider an example of a company that sells smartphones. Suppose the company sells its smartphones for $500 each, and it sells 1000 units in a month, resulting in a total revenue of $500,000. Now, if the company decides to produce and sell one more smartphone, it would have to adjust its price to attract buyers. Let's assume the company reduces the price to $400 for the additional unit.
In this case, the marginal revenue for the additional unit would be $400 because that is the amount of revenue generated from the sale of that unit. The total revenue after selling 1001 units would be $500,000 + $400 = $500,400. Therefore, the marginal revenue for the additional unit is $400.
It is important to note that marginal revenue can vary depending on the market conditions, demand for the product, and the pricing strategies employed by the firm. In some cases, marginal revenue may be positive, indicating an increase in revenue from selling an additional unit. However, in certain situations, such as when the market is highly competitive, marginal revenue may be negative, indicating a decrease in revenue from selling an additional unit.
Overall, marginal revenue is a crucial concept for businesses as it helps them determine the optimal level of production and pricing strategies to maximize their profits. By understanding the change in revenue associated with each additional unit of output, firms can make informed decisions regarding their production and pricing policies.
Can you explain the answer of this question below:What is called point of satiety?
- A:
The point where marginal utility becomes less than zero
- B:
The point where marginal utility becomes greater than zero
- C:
The point where marginal utility becomes zero.
- D:
None of above
The answer is C.
What is called point of satiety?
The point where marginal utility becomes less than zero
The point where marginal utility becomes greater than zero
The point where marginal utility becomes zero.
None of above
|
|
Jayant Mishra answered |
Point of Satiety is defined as '' the point where marginal utility of any commodity is zero''. Thus it is a point where satisfaction of any commodity is zero.
During excess demand- a)Market price is lower than the equilibrium price
- b)Market price is higher than the equilibrium price
- c)Market price is same as the equilibrium price
- d)None of these
Correct answer is option 'A'. Can you explain this answer?
During excess demand
a)
Market price is lower than the equilibrium price
b)
Market price is higher than the equilibrium price
c)
Market price is same as the equilibrium price
d)
None of these
|
|
Arun Khanna answered |
Excess Demand:
Excess demand refers to the situation when aggregate demand (AD) is more than the aggregate supply (AS) corresponding to full employment level of output in the economy. It is the excess of anticipated expenditure over the value of full employment output.
Explain the relationship TC, TFC & TVC.- a)TVC+TFC= TC
- b)TVC X TFC= TC
- c)TVC-TFC= TC
- d)TVC/TFC=TC
Correct answer is option 'A'. Can you explain this answer?
Explain the relationship TC, TFC & TVC.
a)
TVC+TFC= TC
b)
TVC X TFC= TC
c)
TVC-TFC= TC
d)
TVC/TFC=TC
|
|
Vikas Kapoor answered |
Relationship between TFC, TVC, and TC. Total fixed cost (TFC) is represented by a straight line parallel to X-axis and it remains unchanged for all output levels in a time period. ... TC is the sum of TFC and TVC. When no variable output is added, TC is equal to TFC.
Excess demand occurs when- a)Market price fall below the equilibrium price
- b)Market price rise higher than the equilibrium price
- c)Market price remains the same
- d)none
Correct answer is option 'A'. Can you explain this answer?
Excess demand occurs when
a)
Market price fall below the equilibrium price
b)
Market price rise higher than the equilibrium price
c)
Market price remains the same
d)
none
|
|
Arjun Singhania answered |
Excess Demand. When at the current price level, the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market. Excess demand occurs at a price less than the equilibrium price.
Explicit costs are paid to- a)External owners of factors
- b)The tax authorities
- c)Internal owners of factors
- d)The government
Correct answer is option 'A'. Can you explain this answer?
Explicit costs are paid to
a)
External owners of factors
b)
The tax authorities
c)
Internal owners of factors
d)
The government
|
|
Poonam Reddy answered |
Total cost is what the firm pays for producing and selling its products. Explicit costs are normal business expenses that are easy to track and appear in the general ledger. Explicit costs are the only costs necessary to calculate a profit, as they clearly affect a company's profits. Wages that a firm pays its employees or rent that a firm pays for its office are explicit costs.
A PPC is downward sloping and____________ to the origin. Choose the correct option.- a)Convex
- b)Concave
- c)Inverse U shaped
- d)U shaped
Correct answer is option 'B'. Can you explain this answer?
A PPC is downward sloping and____________ to the origin. Choose the correct option.
a)
Convex
b)
Concave
c)
Inverse U shaped
d)
U shaped
|
Leena Hotwani answered |
P.P.C. is concave to the origin due to increase in marginal rate of transformation.
Which of the following utility approach suggests that utility is a measurable and quantifiable entity?- a)Ordinal approach
- b)Cardinal approach
- c)Both cardinal & ordinal
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Which of the following utility approach suggests that utility is a measurable and quantifiable entity?
a)
Ordinal approach
b)
Cardinal approach
c)
Both cardinal & ordinal
d)
None of these
|
Ritika Verma answered |
Cardinal approach is developed by Marshal..According to the cardinal approach utility can be measured in absolute numbers and it's unit of measurement of utility.
Price determination of a commodity is a subject matter of microeconomics.- a)False
- b)True
- c)Can’t say
- d)Conditional
Correct answer is option 'B'. Can you explain this answer?
Price determination of a commodity is a subject matter of microeconomics.
a)
False
b)
True
c)
Can’t say
d)
Conditional
|
Prem Yadav answered |
Price of a commodity is decided by demand and supply for it in the economy and aggregate demand supply are macro variables
Normative economics states- a)What ought to be
- b)Central problems of an economy
- c)What was
- d)What is
Correct answer is option 'A'. Can you explain this answer?
Normative economics states
a)
What ought to be
b)
Central problems of an economy
c)
What was
d)
What is
|
|
Priya Patel answered |
Normative economics. Normative economics (as opposed to positive economics) is a part of economics that expresses value or normative judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.
Ring deficient demand- a)Market price remains the same
- b)Market price rise
- c)Market price falls below the equilibrium price
- d)Market price fall
Correct answer is option 'D'. Can you explain this answer?
Ring deficient demand
a)
Market price remains the same
b)
Market price rise
c)
Market price falls below the equilibrium price
d)
Market price fall
|
Rajat Patel answered |
Deficient demand refers to the situation when aggregate demand (AD) is less than the aggregate supply (AS) corresponding to full employment level of output in the economy. ... The situation of deficient demand arises when planned aggregate expenditure falls short of aggregate supply at the full employment level.
A rise in the price of the complementary good leads to- a)Shift of the demand curve of the given good only
- b)Expansion of the supply curve of the given good only
- c)Contraction of the demand for the given good
- d)Shift of the demand and supply curves of the given good
Correct answer is option 'C'. Can you explain this answer?
A rise in the price of the complementary good leads to
a)
Shift of the demand curve of the given good only
b)
Expansion of the supply curve of the given good only
c)
Contraction of the demand for the given good
d)
Shift of the demand and supply curves of the given good
|
|
Nandini Iyer answered |
Complementary good or complement is a good with a negative cross elasticity of demand, in contrast to a substitute good. This means a good's demand is increased when the price of another good is decreased. ... When two goods are complements, they experience joint demand.
A complementary good is a good whose use is related to the use of an associated or paired good. Two goods (A and B) are complementary if using more of good A requires the use of more of good B. For example, the demand for one good (printers) generates demand for the other (ink cartridges).
This a MCQ (Multiple Choice Question) based practice test of Chapter 6 - Non-Competitive Markets of Economics of Class XII (12) for the quick revision/preparation of School Board examinationsQ Which of the following is not the feature of an imperfect competition?- a)Large number of buyers
- b)Single seller
- c)Homogeneous products
- d)Price maker
Correct answer is option 'C'. Can you explain this answer?
This a MCQ (Multiple Choice Question) based practice test of Chapter 6 - Non-Competitive Markets of Economics of Class XII (12) for the quick revision/preparation of School Board examinations
Q Which of the following is not the feature of an imperfect competition?
a)
Large number of buyers
b)
Single seller
c)
Homogeneous products
d)
Price maker
|
|
Arun Khanna answered |
A homogeneous product is one that cannot be distinguished from competing products from different suppliers. In other words, the product has essentially the same physical characteristics and quality as similar products from other suppliers. One product can easily be substituted for the other.
Which of the following statements regarding ordinal utility is true?- a)Utility can be measured, but cannot be ranked in order of preferences.
- b)Utility can neither be measured nor can be ranked in order of preferences.
- c)Utility can be measured and can also be ranked in order of preferences.
- d)Utility cannot be measured, but can be ranked in order of preferences.
Correct answer is option 'D'. Can you explain this answer?
Which of the following statements regarding ordinal utility is true?
a)
Utility can be measured, but cannot be ranked in order of preferences.
b)
Utility can neither be measured nor can be ranked in order of preferences.
c)
Utility can be measured and can also be ranked in order of preferences.
d)
Utility cannot be measured, but can be ranked in order of preferences.
|
|
Poonam Reddy answered |
In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
Which of the following is not true?- a)Indifference curves cannot intersect each other
- b)Two indifference curve can be tangent to each other
- c)Indifference curves are convex to the origin
- d)Indifference curves slopes downward to the right
Correct answer is option 'B'. Can you explain this answer?
Which of the following is not true?
a)
Indifference curves cannot intersect each other
b)
Two indifference curve can be tangent to each other
c)
Indifference curves are convex to the origin
d)
Indifference curves slopes downward to the right
|
|
Aryan Khanna answered |
Each indifference curve is convex to the origin, and no two indifference curves ever intersect. Consumers are always assumed to be more satisfied when achieving bundles of goods on higher indifference curves. If a consumer's income increases, the curve will move higher up on a graph because the consumer can now afford more of each type of good.
Can you explain the answer of this question below:Unfavorable change in the taste for a good leads to
- A:
Shift of the demand curve of the given good only
- B:
Movement of the demand and supply curves of the given good
- C:
Shift of the demand and supply curves of the given good
- D:
Contraction of the demand for the given good
The answer is D.
Unfavorable change in the taste for a good leads to
Shift of the demand curve of the given good only
Movement of the demand and supply curves of the given good
Shift of the demand and supply curves of the given good
Contraction of the demand for the given good
|
Kusum Chugh answered |
Ans :TASTE AND PREFERENCES --~The demand for a commodity is also affected by the taste and preference of the consumer. ~The demand for a commodity will increase if consumer’s taste changes in favour of the commodity and,~Any UNFAVORABLE CHANGE in taste or PREFERENCE will REDUCE the DEMAND for the COMMODITY.
What are the conditions for the long run equilibrium of the competitive firm?- a)SMC=SAC=LMC
- b)P=MR
- c)LMC=LAC=P
- d)All of the above
Correct answer is option 'C'. Can you explain this answer?
What are the conditions for the long run equilibrium of the competitive firm?
a)
SMC=SAC=LMC
b)
P=MR
c)
LMC=LAC=P
d)
All of the above
|
Anjana Desai answered |
Conditions for Long Run Equilibrium of Competitive Firm
In a perfectly competitive market, there are certain conditions that must be met for a firm to achieve long-run equilibrium. These conditions are as follows:
LMC = LAC = P
In the long run, a firm in a perfectly competitive market will produce at the point where its long-run marginal cost (LMC) is equal to its long-run average cost (LAC). At this point, the firm is producing at the minimum efficient scale, which means that it is producing at the lowest possible cost.
At the same time, the price of the good or service that the firm is selling (P) must be equal to its long-run marginal cost (LMC) and its long-run average cost (LAC). This condition ensures that the firm is earning zero economic profit in the long run.
Implications of these Conditions
When a firm is in long-run equilibrium, it is operating at maximum efficiency. It is producing at the lowest possible cost and selling its output at a price that is just enough to cover its costs. As a result, there is no incentive for new firms to enter the market, and existing firms have no reason to leave.
In this state of equilibrium, the market is perfectly competitive, with many firms producing the same good or service. Consumers benefit from the low prices that result from the firms' efficient production, and the firms themselves are able to earn a reasonable rate of return on their investments.
Conclusion
In conclusion, the conditions for long-run equilibrium of a competitive firm are that its long-run marginal cost (LMC) must be equal to its long-run average cost (LAC), and both these costs must be equal to the price (P) of the good or service. When these conditions are met, the firm is operating at maximum efficiency and the market is perfectly competitive.
In a perfectly competitive market, there are certain conditions that must be met for a firm to achieve long-run equilibrium. These conditions are as follows:
LMC = LAC = P
In the long run, a firm in a perfectly competitive market will produce at the point where its long-run marginal cost (LMC) is equal to its long-run average cost (LAC). At this point, the firm is producing at the minimum efficient scale, which means that it is producing at the lowest possible cost.
At the same time, the price of the good or service that the firm is selling (P) must be equal to its long-run marginal cost (LMC) and its long-run average cost (LAC). This condition ensures that the firm is earning zero economic profit in the long run.
Implications of these Conditions
When a firm is in long-run equilibrium, it is operating at maximum efficiency. It is producing at the lowest possible cost and selling its output at a price that is just enough to cover its costs. As a result, there is no incentive for new firms to enter the market, and existing firms have no reason to leave.
In this state of equilibrium, the market is perfectly competitive, with many firms producing the same good or service. Consumers benefit from the low prices that result from the firms' efficient production, and the firms themselves are able to earn a reasonable rate of return on their investments.
Conclusion
In conclusion, the conditions for long-run equilibrium of a competitive firm are that its long-run marginal cost (LMC) must be equal to its long-run average cost (LAC), and both these costs must be equal to the price (P) of the good or service. When these conditions are met, the firm is operating at maximum efficiency and the market is perfectly competitive.
The general shape of TPP in the short run is- a)V- shaped
- b)Hyperbola
- c)U shaped
- d)Inverse U shaped
Correct answer is option 'D'. Can you explain this answer?
The general shape of TPP in the short run is
a)
V- shaped
b)
Hyperbola
c)
U shaped
d)
Inverse U shaped
|
|
Naina Sharma answered |
Both the Short-run average total cost curve (SRAC) and Long-run average cost curve (LRAC) curves are typically expressed as U-shaped.
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