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No
.
Question
ActualAnswer
SelectedAnswer
Marks
obtained
1.
Potential
competition for firms
isthwarted
2.
the
demand
elasticity
>
the
supplyelasticity
the
demand
elasticity = supply
elasticity
3.
High cost of
enforcingpatents
Highaveragecosts
4.
5.
A monopolist is generallyabletoearnsupernormal
profits.Thishappensbecause
Alloftheabove
P>MC
6.
Amonopolistexercisesmarketpowerwhen
P>MC
P>MC
7.
M1<M2
M1>M2
8.
9.
Normalprofits
Supernormalprofits
10.
Pricediscrimination
11.
an increase in price
and a decrease in
quantitysold
an increase in price
but same quantity
sold
12.
Whichofthefollowingindicateshigher supernormal
profitsforamonopolist
Alloftheabove
Alloftheabove
13.
The priceelasticities
for
the
market
segments
would
differ
The priceelasticities
for
the
market
segments
would
differ
14.
Discretion in fixing
priceorquantity
Discretion in fixing
priceandquantity
15.
Both(a)and(b)
Either(a)or(b)
16.
In a competitivemarketstructure,twofirms,namely
A & B earn varying profits.Assume Firm B earns a
profit of US$ 10,000 while that of Firm A is
US$30,000.Thisdifferenceinprofitsarisesbecause:
17.
Firms
practice
product
differentiation that
are
imperfect
substitutes
18.
Collusion
Collusion
19.
alloftheabove
alloftheabove
20.
customer
recognition of higher
quality and service
standards
customer
recognition of higher
quality and service
standards
Q.No
.
Question
ActualAnswer
SelectedAnswer
Marks
obtained
1.
2.
Alloftheabove
Alloftheabove
3.
Incrementalcost
Totalcost
4.
Alloftheabove
Cost
of
all
purchasedinputs
5.
Average variable
costs and average
productivity
are
inverselyrelated
6.
Operating under
excesscapacity
Operating under
excesscapacity
7.
Alloftheabove
Alloftheabove
the
TotalCorrect
Answers
Horizontal
integration
Horizontal
integration
9.
P>AVC
P>MC
10.
Fixedcost
Fixedcost
11.
OpportunityCost
MarginalCost
12.
Expandplantsize
Increase production
in the rising part of
the marginal cost
curve
13.
14.
Fixedcost
Averagecost
15.
Monopolymarket
Monopolymarket
16.
Anyplantsize
Smallsizeplant
17.
MES definestheoptimumscaleofoperation/sizefor
a firm.This is becausetheminimumpointinLRACis
tangentialtotheSRACatthe
Minimum part of
SRACcurve
18.
Increasingreturnsto
variableinput
Decreasing returns
tovariableinput
19.
Small production
facilities closer to
market
Small production
facilities closer to
market
20.
Normalprofits
Incurlosses
TotalCorrect
Answers
.No.
Question
ActualAnswer
SelectedAnswer
Marks
obtaine
d
1.
both(a)and(b)
upwardshiftofthe
TPcurve
2.
Intheproductionfunctionframework,efficiency
in production is defined by which of the
following:
Minimum input
requirement for a
given level of
output
Minimum input
requirement for a
given level of
output
3.
Both(a)and(b)
Both(a)and(b)
4.
MRPL<PL
MRPL<PL
5.
Marginal
productivity
Marginal
productivity
6.
Operating below
theAPLcurve
Operating in the
rising
part
of
APLcurve
7.
A firm's output
capability
is
Alloftheabove
increased
or
decreased
by
alteringtechnology
8.
More of variable
inputs relative to
fixed inputs are
used
The quality of
variable
input
decreases as more
production takes
place
9.
In most Governmentoffices,employeesreceive
annual fixed increments. Such a practice, it is
said,leadstoinefficiencies.Thisisbecause
10.
MRPL>PL
MRPL>PL
11.
12.
Varying output
with
varying
equipment
and
managerial
capability
Varying output
with
varying
equipment
and
managerial
capability
13.
APLismaximum
14.
Higher
returns/wages to
labour&capital
Higher
returns/wages to
labour&capital
15.
Rise in output
price>riseininput
costs
Rise in output
price>riseininput
costs
16.
MPL=Wage
17.
18.
APL maximum
under recessionary
condition
APL maximum
under recessionary
condition
19.
20.
WhenMPL=APL,whichofthefollowingistrue:
APismaximum
MPismaximum
Q.N
o.
Question
ActualAnswer
SelectedAnswer
Marks
obtaine
d
1.
large number of
substitutes
available
2.
Price elasticity
equal to one and
MR=0
Price elasticity is
greater than one
andMR=0
3.
If the product is a
Normalgood
If the product is a
Normalgood
4.
Accounts for a
small share in
consumer
expenditure
No substitute
productsavailable
5.
Cross
elasticity
demand
Cross
elasticity
demand
price
of
6.
The
price
elasticity is greater
thanone
The
price
elasticity is less
thanone
7.
Scarcityvalue
Alloftheabove
8.
the priceelasticity
of demand along
the demand curve
decreases as we
move from top to
bottom
the priceelasticity
of demand along
the demand curve
decreases as we
move from top to
bottom
9.
10.
Decrease in price
ofproduct
A successful
advertisement
campaign
TotalCorrect
Answers
13
price
of
11.
Inrecession,demandforluxurygoodsfall.This
isbecause
The
income
elasticity is less
thanone
The
income
elasticity is greater
thanone
12.
Decrease in price
is necessary to
maintain quantity
demanded
Alloftheabove
13.
The
price
elasticity is greater
thanone
The
price
elasticity is less
thanone
14.
No change in
demandforY
No change in
demandforY
15.
Consumer
demand response
to price changes
cannotbeisolated
Consumer tastes
cannot
be
measured
16.
Alloftheabove
Increase
in
consumption of a
good
17.
Consumption of
good B toincrease
and keep price
constant
Consumption of
good A toincrease
and keep price
constant
18.
Both(a)&(b)
Either(a)or(b)
19.
Alloftheabove
Alloftheabove
20.
Less substitutes
are available at the
market
level
compared to that
ofatfirmlevel
Less substitutes
are available at the
market
level
compared to that
ofatfirmlevel
TotalCorrect
Answers