Economics - Study Mode
[#751] What is the fundamental premise of economics?
Correct Answer
(C) Individuals choose the alternative for which they believe the net gains to be the greatest
[#752] Consider the following statements. 1. A profit maximising monopolist in different markets will adjust his sales in the two markets, so that his MR in each market just equals his MC. 2. A profit maximising monopolist in separate markets will not adjust his sales. 3. A profit maximising monopolist in separate markets will adjust his sales in the two markets, so that his MR in each market will greater than MC. 4. A profit maximising firm in separate markets will adjust his sales in each market so, that his MR is less than MC. Which of the statement(s) given above is/are correct?
Correct Answer
(C) Only 4
[#753] Assume in a competitive market that price is initially above the equilibrium level. We can predict that price will
Correct Answer
(C) decrease, quantity demanded will increase and quantity supplied will decrease
[#754] The prices of two goods X and Y are: P x = Rs. 5 and P y = Rs. 3, respectively. If a consumer spending his entire income on these two commodities is at a point on the budget constraint where MRS xy (marginal rate of substitution of X for Y) is 3 : 1, then
Correct Answer
(D) the total utility of the consumer will increase if he reallocates his expenditure leading to an increase in the amount of Y and a reduction in the amount of X
[#755] The strategy of price discrimination is followed under which firm of market?
Correct Answer
(B) Monopolistic