Economics - Study Mode
[#576] In the long-run, the market price of a commodity is equal to its minimum average cost of production, if there is
Correct Answer
(A) perfect competition
[#577] Economics is derived from the Greek word 'oikonomikus' which means
Correct Answer
(C) House Management
[#578] A production function expressed as
Q = A [αK -β + (1 - α)L -β ]- 1/β Or Q = A [αL -β + (1 - α)K -β ]- 1/β When A > 0, 0 < α < 1 and β > -1 Where L = labour, K = Capital and A, α and β are three parameters is called
Correct Answer
(A) Constant elasticity substitution function
[#579] According to the modern ideology, the law of diminishing return applies to
Correct Answer
(D) In all areas of production
[#580] Which one of the following is not the basic property of indifference curves?
Correct Answer
(B) Indifference curves of two imperfect substitutes are concave to the point of origin