Managerial Economics - Practice Test

(A) A rise in the income of the consumer

(B) An improvement in the techniques of production

(C) A rise in the price of the commodity

(D) An increase in the income of the seller

(B) An improvement in the techniques of production

(A) When each firm is in equilibrium equat ing MC with MR

(B) When all the firms are earning only normal profits

(C) When firms outside have no tendency to enter the industry and those within, have no tendency to leave the industry

(D) When all the three conditions are fulfilled

(D) When all the three conditions are fulfilled

(A) Consumer preferences are unpredictable

(B) Consumer preferences are irrational

(C) X-is a discommodity

(D) Y-is a discommodity

(C) X-is a discommodity

(A) $${e_p} = frac{{{P_1} - {P_2}}}{{{Q_1}}} imes frac{{{P_1} + {P_2}}}{{{Q_2}}}$$

(B) $${e_p} = frac{{frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{{P_1}}} imes 100$$

(C) $${e_p} = frac{{frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{frac{{{P_2} - {P_1}}}{{{P_1}}}}}$$

(D) $${e_p} = frac{{frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{{ ext{Product}}}} imes 100$$

(C) $${e_p} = frac{{frac{{{Q_2} - {Q_1}}}{{{Q_1}}}}}{{frac{{{P_2} - {P_1}}}{{{P_1}}}}}$$

(A) Rs. 15,860

(B) Rs. 12,000

(C) Rs. 13,000

(D) Rs. 19,000

(A) Rs. 15,860

Managerial Economics - Study Mode