Economics - Study Mode

[#1196] Product variation refers to
Correct Answer

(A) an activity undertaken by a firm to increase demand

[#1197] When in order to satisfy a given want, two or more goods are needed in combination, these goods are called
Correct Answer

(A) complementary goods

[#1198] According to Lionel Robbins definition of economics, "Economics is a science which . . . . . . . ."
Correct Answer

(D) All of the above

[#1199] When the perfectly competitive firm and industry are in long run equilibrium, then
Correct Answer

(D) All of the above

Explanation

Solution: When the perfectly competitive firm and industry are in long run equilibrium, then P = MR = SAC = LAC, D = MR = SMC = LMC and, P = MR = Lowest point on the LAC curve.

[#1200] In monopoly, the relationship between average and marginal revenue curves is as follows
Correct Answer

(A) AR curve lies above the MR curve

Explanation

Solution: In monopoly, the relationship between average and marginal revenue curves is that AR curve lies above the MR curve.