Economics - Study Mode

[#401] The example of Joint Demand is
Correct Answer

(A) Ink and Pen

[#402] Normally shaped indifference curves are bowed towards the origin of the graph. The reason for this shape is
Correct Answer

(B) The diminishing marginal rate of substitution

[#403] Match the following. List-I List-II a. Monopoly 1. Single buyer, single seller b. Oligopoly 2. Single seller, many buyers c. Monopsony 3. Single buyer, many sellers d. Duopoly 4. Few sellers, many buyers e. Bilateral monopoly 5. Two sellers, many buyers
Correct Answer

(C) a-2, b-4, c-3, d-5, e-1

[#404] Shutdown point referes to the state of loss in short run where a firm need to decide whether to continue with production activity or to suspend it. This point is decided under which condition? 1. AR = AVC 2. AR = MC 3. AR = TVC 4. AR = AC
Correct Answer

(C) Only 1

[#405] Product differentiation is the most important feature of
Correct Answer

(A) Monopolistic competition

Explanation

Solution: Product differentiation is the most important feature of Monopolistic competition. Monopolistic Competition refers to a market situation in which there are large numbers of firms which sell closely related but differentiated products.