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This set of Managerial Economics 1 Multiple Choice Questions & Answers (MCQs) focuses on Managerial Economics 1 Set 11
Q1 | The condition for the long run equilibrium of a perfectly competitive firm
- Price=MC=AC
- Price=TC
- MC=AVC
- MC=MR
Q2 | Product differentiation is the important feature of
- monopoly
- perfect competition
- monopolistic competition
- monophony
Q3 | The no. of firms under oligopoly is
- 1
- 2
- many
- few
Q4 | The law of diminishing returns applies more to
- agriculture
- industry
- services
- commerce
Q5 | The opportunity cost of a given activity is
- the value of next best activity
- the value of material used
- the cost of input used
- none of these
Q6 | The function of combining the other factors of production is done by
- land
- labour
- Capital
- Entrepreneurship
Q7 | The factors used in the production
- Land and labor
- capital & entrepreneurship
- both a&b
- only capital
Q8 | In a perfect market both buyers and sellers are
- price maker
- price giver
- price taker
- all the above
Q9 | Which is the determinant of the pricing policy of a firm?
- Channel of distribution
- Age of product
- Consumer association
- All of these
Q10 | Information for pricing decisions involves:
- Product information
- Market information
- Information at the micro level
- All of these
Q11 | Which is the reason of skimming price?
- Inelastic demand
- Diversion of market
- Safer price policy
- All of these
Q12 | Which is the condition of for market penetration?
- High price elasticity of demand in the short run
- Savings in production costs
- Threat of potential competition
- All of these
Q13 | Production may be defined as an act of:
- Creating utility
- Earning profit
- Destroying utility
- Providing services
Q14 | The demand curve of a firm in the case of perfect competition is:
- Parallel to output axis
- Increasing with the output axis
- Decreasing with the output axis
- Complete
Q15 | The implication of the kinked demand curve is reflected in a discontinuity in the:
- Marginal revenue curve
- Marginal cost curve
- Total revenue curve
- Total cost curve
Q16 | A firm that is the sole seller of a product without close substitutes called:
- Monopoly
- Oligopoly
- Competition
- Bureaucracy
Q17 | When all the productive services are increased in a given proportion, the product isincreased in the same proportion. This situation is called:
- Law of increasing
- Situation of constant returns
- Fixed cost
- Variable cost
Q18 | Which factors is/are influencing price policy?
- Cost of product
- Time factor
- Government policy
- All of these
Q19 | Pricing methods are:
- Standard cost method
- Learning curve method
- Marginal cost method
- All of these
Q20 | Which is the feature of perfect competition?
- Large number of buyers and sellers
- Freedom of entry and exit
- Normal profit in the long run
- All of these
Q21 | Which is/are the salient features of monopolistic competition?
- Large number of sellers
- Normal profit
- Free entry and exit of firms in industry
- All of these
Q22 | Which are the characteristics of monopoly?
- Single seller or producer
- No close substitutes
- Inelastic demand curve
- All of these
Q23 | The causes of emergence of monopoly is/are:
- Concentration of ownership of raw materials
- State regulation
- Public utility services
- All of these
Q24 | Which are not the features of oligopoly?
- Few sellers
- Advertising and sales promotion
- One firm
- Conflicting attitudes of firms
Q25 | The monopoly can be controlled by:
- Social boycott
- Antimonopoly legislation
- Public ownership
- All of these