Description : When the total product rises at an increasing rate, the - (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant
Last Answer : (2) marginal product is rising Explanation: Marginal product of an input (factor of production) is the extra output that can be produced by using one more unit of the input (for instance ... from total product. The other is average product. Marginal product is directly proportional to total product.
Description : When the total product rises at an increasing rate, the (1) marginal product is zero (2) marginal product is rising (3) marginal product is falling (4) marginal product remains constant
Last Answer : marginal product is rising
Description : If total utility is maximum at a point, then marginal utility is - (1) positive (2) zero (3) negative (4) positive but decreasing
Last Answer : (2) zero Explanation: Marginal utility of a good or service is the gain (or loss) from an increase (or decrease) in the consumption of that good or service. As the rate ... increase in consumption of units of commodities causes marginal utility to become negative; this signifies dissatisfaction.
Description : firm's marginal revenue A.is always negative B.can be positive C.is always positive D.is zero at point at which the total revenue is maximum
Last Answer : D.is zero at point at which the total revenue is maximum
Description : If total utility is maximum at a point, then marginal utility is (1) positive (2) zero (3) negative (4) positive but decreasing
Last Answer : zero
Description : What happens to the internal energy of water at reference temperature where enthalpy is zero? a. Becomes negative b. Becomes positive c. Remains constant d. Cannot be defined
Last Answer : Becomes negative
Description : When marginal utility is zero, the total utility is - (1) Minimum (2) Increasing (3) Maximum (4) Decreasing
Last Answer : (3) Maximum Explanation: Marginal utility measures the extra utility (or satisfaction) from consuming an additional unit of a product. Total utility is the total satisfaction from the consumption of the ... in total satisfaction from the consumption of that unit. So the total unit is at maximum.
Description : Total utility is maximum, when (a) marginal utility is maximum (b) marginal utility is zero © marginal utility increases (d) average utility is maximum
Last Answer : (b) marginal utility is zero
Description : When marginal utility is zero, the total utility is (1) Minimum (2) Increasing (3) Maximum (4) Decreasing
Last Answer : Maximum
Description : If total product is at its maximum then: (AP= Average product) (MP= Marginal product) (1) AF = 0 (2) AP < 0 (3) MP = 0 (4) AP = MP = 0
Last Answer : (3) MP = 0 Explanation: Total product (TP) is the total output a production unit can produce, using different combination of factors of production. When marginal product =0 (at point D in ... figure given below). Then en as the marginal product becomes negative, the total product starts going down.
Description : The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: a. Total physical product begins ... The marginal physical product rises c. The marginal physical product falls d. The average physical product falls
Last Answer : c. The marginal physical product falls
Description : 1. Which of the following concepts represents the extra revenue a firm receives from the services of an additional unit of a factor of production? a. total revenue b. marginal physical product c. marginal revenus product d. marginal revenue
Last Answer : c. marginal revenus product
Description : If total product is at its maximum then: (AP= Average product) (MP= Marginal product) (1) AP = 0 (2) AP < 0 (3) MP = 0 (4) AP = MP = 0
Last Answer : MP = 0
Description : If two commodities are complements, then their crossprice elasticity is- (1) zero (2) positive (3) negative (4) imaginary number
Last Answer : (4) imaginary number Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in ... denotes two products that are complements, while a positive cross elasticity denotes two substitute products.
Description : Cross elasticity of demand between petrol and car is - (1) infinite (2) positive (3) zero (4) negative
Last Answer : (4) negative Explanation: In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the ... denotes two products that are complements, while a positive cross elasticity denotes two substitute products
Description : In the case of an inferior good, the income elasticity of demand is : (1) Zero (2) Negative (3) Infinite (4) Positive
Last Answer : (2) Negative Explanation: A negative income elasticity of demand is associated with inferior goods; an increase in income will lead to a fall in the demand and may lead to changes to more luxurious ... demand is associated with normal goods; an increase in income will lead to a rise in demand.
Description : Cross-price elasticity of demand between tea and coffee is (a) negative (b) positive © zero (d) infinite
Last Answer : (b) positive
Last Answer : Negative
Description : If two commodities are complements, then their cross-price elasticity is (1) zero (2) positive (3) negative (4) imaginary number
Last Answer : negative
Description : Cross elasticity of demand between petrol and car is (1) infinite (2) positive (3) zero (4) negative
Description : Third stage of Law of Variable Proportion is called - (1) negative returns (2) positive returns (3) constant returns (4) increasing returns
Last Answer : (1) negative returns Explanation: The stages of Law of Variable Proportion are: Stage 1: Increasing return: Stage 2: Diminishing return; and Stage 3: Negative Return. In the third stage Marginal Product of variable factor is zero. In this stage the Total Product starts diminishing.
Description : Third stage of Law of Variable Proportion is called (1) negative returns (2) positive returns (3) constant returns (4) increasing returns
Last Answer : negative returns
Description : In frequency modulation, amplitude of modulated wave is A. positive B. negative C. constant D. zero
Last Answer : constant
Description : A chemical reaction will occur spontaneously at constant pressure and temperature, if the free energy is (A) Zero (B) Positive (C) Negative (D) None of these
Last Answer : (C) Negative
Description : A constant potential difference is applied across the plates of a parallel-plate capacitor. Neglecting any edge effects, the electric field inside the capacitor is: w) constant x) varying as one over r squared y) decreasing as one moves from the positive to the negative plate z) zero
Last Answer : ANSWER: W -- CONSTANT
Description : An employer goes on employing more and more of a factor units until : (1) the Average Revenue Productivity becomes equal to Marginal Revenue Productivity. (2) the Marginal Revenue Productivity becomes ... into operation. (4) the Marginal Revenue Productivity of a factor becomes equal to its reward.
Last Answer : (4) the Marginal Revenue Productivity of a factor becomes equal to its reward. Explanation: 'According to the Marginal Productivity Theory, the reward or the price of a factor unit depends upon its ... marginal cost of the factor is greater than MRP, it will reduce employment to reduce its loss.
Description : At elasticity of one, marginal revenue is equal to A.one B.zero C.infinity D.none
Last Answer : B.zero
Description : Marginal cost of allowing another person to benefit from a pure public goods is (a) Zero (b) one (c) both (a) and (b) d) more than one
Last Answer : a) Zero
Last Answer : the Marginal Revenue Productivity of a factor becomes equal to its reward.
Description : In planetary motion a.The total angular momentum remains constant b.The total linear momentum remains constant c.The total linear momentum is zero d.The total angular momentum is zero e.None of the above
Last Answer : a. The total angular momentum remains constant
Description : During inter conversion of energy from one form to other forms, total energy at any time remains– (1) constant (2) zero (3) increasing (4) decreasing
Last Answer : (1) constant Explanation: During interconversion of energy from one form to other forms, total energy at any time remains constant.
Description : The Marginal Utility Curve slopes downward from left to right indicating - (1) A direct relationship between marginal utility and the stock of commodity (2) A constant relationship between marginal ... stock of commodity (4) An inverse relationship between marginal utility and the stock of commodity
Last Answer : (4) An inverse relationship between marginal utility and the stock of commodity Explanation: The Marginal Utility Curve is a curve illustrating the relation between the marginal utility obtained from ... marginal (additional) benefit to the consumer falls; hence consumers are prepared to pay less.
Description : Demand curve can be derived from the law of diminishlng marginal utility on which of the following assumptions? (i) Utility can be measured in quantitative terms (ii) Utility of money is constant Of these statements: A.Only ... ) and (ii) are true C.Only (ii) is true D.Neither (i) nor (ii) is true
Last Answer : B.Both (i) and (ii) are true
Description : The Marginal Utility Curve slopes downward from left to right indicating (1) A direct relationship between marginal utility and the stock of commodity (2) A constant relationship between marginal ... stock of commodity (4) An inverse relationship between marginal utility and the stock of commodity
Last Answer : An inverse relationship between marginal utility and the stock of commodity
Description : The total energy of revolving electron in an atom – (1) cannot be negative (2) can have any value above zero (3) can never be positive (4) will always be positive
Last Answer : (3) can never be positive Explanation: The total energy of a revolving electron in any orbit is the sum of its kinetic and potential energies. Energy of an electron at infinite distance from the ... and the energy of electron decreases and thus becomes negative. Thus, it can never be positive.
Description : If the plates of capacitor are oppositely charged then the total charge is equal to A. negative B. positive C. zero D. infinite
Description : Critical path moves along the activities having total float as (a) Positive (b) Negative ( c) Zero (d) Unity
Last Answer : ( c) Zero
Description : For a missile launched with a velocity less than the earth’s escape velocity, the total energy is (1) either positive of negative (2) Negative (3) Zero (4) Positive
Description : The total energy of revolving electron in an atom (1) cannot be negative (2) can have any value above zero (3) can never be positive (4) will always be positive
Last Answer : can never be positive
Description : "Marginal Cost" equals - (1) total cost minus total benefit for the last unit produced (2) total cost divided by total benefit for the last unit produced (3) total cost divided by quantity (4) the change in total cost divided by the change in quantity
Last Answer : (4) the change in total cost divided by the change in quantity Explanation: Marginal cost is the change in the total cost that arises when the quantity produced has an increment by unity. That is, it is ... Rs.50,002. That would mean the marginal cost-the cost of producing the next unit- was Rs.2.
Description : Equilibrium price in the market is determined by the - (1) equality between marginal cost and average cost. (2) equality between total cost and total revenue. (3) equality between average cost and average revenue. (4) equality between marginal cost and marginal revenue.
Last Answer : (4) equality between marginal cost and marginal revenue. Explanation: The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the ... in equilibrium at the point of equality of marginal cost and marginal revenue. (MC = MR).
Description : The total utility from 9 units of commodity x is 20 and from 10 units is 15. Calculate the marginal utility from 10th unit. (1) 0.5 (3) 5 (2) -0.5 (4) -5
Last Answer : (4) -5 Explanation: Marginal Utility = Change in Total Utility / Change in number of Units consumed. The first component of the formula is to calculate the change in total utility. The second component of the marginal utility formula is the change in the number of units that have been consumed.
Description : The 'break-even' point is where (1) marginal revenue equals marginal cost (2) average revenue equals average cost, (3) total revenue equals total cost (4) None of the above
Last Answer : (3) total revenue equals total cost Explanation: Break-even is the point of balance between making either a profit or a loss. In economics & business, specifically cost accounting, the break ... although opportunity costs have been "paid", and capital has received the riskadjusted, expected return.
Description : Equilibrium output is deter-mined by: (1) the equality between total Variable cost and Marginal revenue. (2) the equality between Marginal cost and Marginal revenue. (3) the equality between Average cost and Average revenue. (4) the equality between total cost and total revenue.
Last Answer : (2) the equality between Marginal cost and Marginal revenue. Explanation: Equilibrium Output refers to the level of output where the Aggregate Demand is equal to the Aggregate Supply (AD = AS) in an ... because it adds to its profits. He stops producing more only when MC becomes equal to MR.
Description : A firm is in equilibrium when its (1) marginal cost equals the marginal revenue (2) total cost is minimum (3) total revenue is maximum (4) average revenue and marginal revenue are equal
Last Answer : (1) marginal cost equals the marginal revenue Explanation: A consumer is in a state of equilibrium when he achieves maximum aggregate satisfaction on the expenditure that he makes depending on the ... its production. In short run Marginal revenue = Marginal Cost is the condition of equilibrium.
Description : The 'breali-even point' is where - (1) marginal revenue equals marginal cost (2) average revenue equals average cost (3) total revenue equals total cost (4) None of these
Last Answer : (2) average revenue equals average cost Explanation: The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one ... been made, although opportunity costs have been "paid", and capital has received the riskadjusted, expected return.
Description : Which of the following is an inverted `U' shaped curve? (1) Average cost (2) Marginal cost (3) Total cost (4) Fixed cost
Last Answer : (1) Average cost Explanation: In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. Both the Short-run average total cost curve (SRAC) and Long ... typically expressed as U-shaped. However, the shapes of the curves are not due to the same factors.
Description : Diamonds are priced higher than water because : (1) they are sold by selected firms with monopolistic powers. (2) their marginal utility to buyers is higher than that of water. (3) their total utility to buyers is higher than that of water. (4) consumers do not buy them at lower prices.
Last Answer : (2) their marginal utility to buyers is higher than that of water. Explanation: The water diamond paradox or puzzle was a mystery of Adam Smith who observed that the price of diamonds was much higher ... is very high and so consumers are willing to pay higher prices for diamond, than for water.
Description : The addition to total cost by producing an additional unit of out-put by a firm is called - (1) Variable cost (2) Average cost (3) Marginal cost (4) Opportunity cost
Last Answer : (3) Marginal cost Explanation: The addition to total cost by producing an additional unit of output by a firm is called Marginal cost. Average cost is the total cost of producing a given output divided by that output.
Description : Under hill cost pricing, price is determined - (1) by adding a margin to the average cost (2) by comparing marginal cost and marginal revem (3) by adding normal profit to the marginal cost (4) by the total al cost of production
Last Answer : (1) by adding a margin to the average cost Explanation: Full cost pricing is a practice where the price of a product is calculated by a firm on the basis of its direct costs per unit of output ... is known as 'full-cost' pricing. The price is equal to 'full' cost, including an acceptable profit.