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[#456] Assertion (A): If the monopolist faces identical demand curves for his commodity in two separate markets, by practising third degree price discrimination, he cannot increase his TR and total profits. Reason (R): As the marginal revenue curves are identical when the demand curves in the two markets are the same, the monopolist will not charge different prices in each market to maximise profits.

(A) Both A and R are true and R is the correct explanation of A

(B) Both A and R are true, but R is NOT a correct explanation of A

(C) A is true, but R is false

(D) A is false, but R is true

Correct Answer

(A) Both A and R are true and R is the correct explanation of A

[#457] On the expansion path of the firm operating with homogeneous production function, which among the following remain constant? 1. Input ratio 2. Price ratio of inputs 3. Marginal rate of technical substitution between the factors 4. Elasticity of substitution Select the correct answer

(A) 1 and 4

(B) 1 and 2

(C) 2, 3 and 4

(D) 1, 2, 3 and 4

Correct Answer

(A) 1 and 4

[#458] If the price of coffee suddenly shoots up. Ceteris paribus, the demand for tea is expected to

(A) move rightward along the original demand curve

(B) increase

(C) remain unaffected

(D) decrease

Correct Answer

(B) increase

[#459] Dan Patinkin has proved the law of proportionality with the help of which of the following effect

(A) Price effect

(B) Income effect

(C) Substitution effect

(D) Actual balance effect

Correct Answer

(D) Actual balance effect

[#460] 'Life Expectancy' term is used for:

(A) Standard of living

(B) Poverty

(C) Income

(D) Age

Correct Answer

(D) Age