Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Suppose that the demand curve for the XYZ Co. slopes downward and to the right. We can conclude that:

1. The firm operates in a perfectly competitive market.
2. The firm can sell all that it wants to at the established market price.
3. The XYZ Co. is not a price taker in the market because it must lower the price to sell additional units of output.
4. The XYZ Co. will not be able to maximise profits because price and revenue are subject to change.

If in an industry, demand and supply will not intersect in positive quadrant, then it is called:

1. Illegal industry.
2. Viable industry.
3. Non-viable industry.
4. Sick industry.

The absolute value of the coefficient of price elasticity of demand ranges from:

1. Zero to infinity.
2. Minus infinity to plus infinity.
3. One to minus infinity.
4. One to infinity.

Price discrimination is one of the features of:

1. monopolistic competition.
2. monopoly.
3. perfect competition.
4. oligopoly.

Diminishing marginal returns for the first four units of a variable input is exhibited by the total product sequence:

1. 50,50,50,50
2. 50, 110, 180, 260
3. 50, 100, 150, 200
4. 50, 90, 120, 140

vertical supply curve parallel to Y-axis implies that the elasticity of supply is:

1. Zero.
2. Infinity.
3. Equal to one.
4. Greater than zero but less than infinity.

Suppose in a hypothetical economy, the income rises from ₹ 5,000 crores to ₹ 6,000 crores. As a result, the consumption expenditure rises from ₹ 4,000 to ₹ 34,600 crores. Marginal Propensity to Consume in such a case would be _______.

1. 0.8
2. 0.4
3. 0.2
4. 0.6

There is inverse relation between price and demand for the product of a firm under: (choose the correct alternative)

1. Monopoly only.
2. Monopolistic competition only.
3. Both under monopoly and monopolistic competition.
4. Perfect competition only.

When marginal utility is negative, total utility is:

1. Zero.
2. Diminishing.
3. Maximum.
4. Minimum.