Economics - Study Mode
[#906] Long run equilibrium price of a perfectly competitive firm is always
Correct Answer
(D) equal to LAC
[#907] Assertion (A): The imposition of a per unit tax causes the monopolist's average cost and marginal cost curves to shift up. Reason (R): The per unit tax is like a variable cost.
Correct Answer
(A) Both A and R are true and R is the correct explanation of A
[#908] Classical writers could not resolve the 'water-diamond' paradox because they could not distinguish between
Correct Answer
(B) MU from TU
[#909] A firm encountering economies of scale over some range of output will have a
Correct Answer
(A) Rising long-run average cost curve
[#910] Statement (A): The isoquant curves are drawn convex to the origin due to the diminishing technical rate of substitution. Statement (B): The lesser the convexity of the isoquant curve, the greater the possibility of the complementarity of the two inputs.
Correct Answer
(B) Statement (A) is correct but (B) is incorrect