Economics - Study Mode

[#656] A consumer shall be in equilibrium when he has consumed three more commodities, if
Correct Answer

(B) $$frac{{{ ext{MU of X}}}}{{{ ext{Value of X}}}} = frac{{{ ext{MU of Y}}}}{{{ ext{Value of Y}}}} = frac{{{ ext{MU of good Z}}}}{{{ ext{Value of Z}}}}$$

[#657] In case of monopolistic equilibrium
Correct Answer

(B) AR > MR

[#658] If the price of good Y increase and the price of good X remains the same and in such a situation the demand for X increases then
Correct Answer

(A) X and Y will be substitute goods

[#659] Franchising is a practice of:
Correct Answer

(A) Leasing for a prescribed period of time, the right to use firm's successful business model and brand

[#660] Normal profit is called normal because
Correct Answer

(B) It is minimum acceptable to the producer

Explanation

Solution: Normal profit is called normal because It is minimum acceptable to the producer. Normal profit is a situation where a firm makes sufficient revenue to cover its total costs and remain competitive in an industry.