Production and cost — Economics STD 12 Humanities & Commerce — Question

In monopolistic competition the goods are.

1. Durable.
2. Differentiated.
3. Heterogeneous.
4. Homogeneous.

When AC is more than AR, what is the firm doing?

1. Making supernormal profit.
2. Incurring loss.
3. Having breakeven point.
4. Minimising losses.

Suppose total revenue is rising at a constant rate as more and more units of a commodity are sold, marginal revenue would be: (choose the correct alternative)

1. Greater than average revenue.
2. Equal to average revenue.
3. Less than average revenue.
4. Rising.

Per unit production of the variable factor is called:

1. Total product.
2. Average product.
3. Marginal product.
4. None of these.

Which of the following is not the property of indifference curve?

1. Higher the indifference curve higher the level of satisfaction.
2. Two indifference curves cannot intersect each other.
3. Indifference curve is concave to origin.
4. Indifference curve is downward sloping.

Which of the following formula is correct for calculating marginal cost? (Choose the correct alternative)

1. MC_N = TFC_n - TFC_N–1
2. MC_N = AC_N - AC_{N – 1}
3. MC_N = AVC_N - AVC_n–1
4. MC_N = TC_n - TC_N–1

_____ is the problem which is concerned with the distribution of national income among those who have helped to produce it.

1. How to produce?
2. What to produce?
3. Why to produce?
4. For whom to produce?

Price discrimination will be profitable only if the elasticity of demand in different sub markets is:

2. Uniform.
3. Different.
4. Less.
5. Zero.

Which of the following is not the feature of an imperfect competition?

1. Large number of buyers.
2. Single seller.
3. Homogeneous products.
4. Price maker.