If perfectly competitive markets, the profit maximization rule can be represented by: A. Mr = ATC B. P= MC C. P= ATC D. P = AC

1 Answer

Answer :

ANSWER: B

Related questions

Description : Under perfect market conditions the supply curve of a firm is represented by (a) MC curve ; (b) MR curve ; (c) AR curve ; (d) AC curve 

Last Answer : (a) MC curve ; 

Description : Which one is not normally possible in case of monopoly? A.MC = MR B.AC = AR C.MR = AR D.MR = P

Last Answer : C.MR = AR

Description : In equilibrium, a perfectly competitive firm will equate - (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost

Last Answer : (4) marginal revenue with marginal cost Explanation: A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost ... marginal cost curve. The marginal cost curve is thus the perfectly competitive firm's supply curve.

Description : In equilibrium, a perfectly competitive firm will equate (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost

Last Answer : marginal revenue with marginal cost

Description : The degree of Monopoly power can be measured by the formula : (a) (P – MC) / P (b) AR / (AR – MR) (c) MR / (AR – MR) (d) MC / (AR – MR)

Last Answer : (a) (P – MC) / P

Description : In short run a monopolistic competition firm will be in equilibrium where (a) MR = curve intersect SMC curve from above (b) MR curve intersect SMC curve from below (c) MC = AR ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Last Answer : ; (d) MR curve intersect SMC from below and P is equal to or more than AVC

Description : A competitive firm maximizes its total profit when ……………… (a) Average cost equal average realization ; (b) Marginal cost equals Price; (d) Total revenue is the maximum ; (d) MR = AR

Last Answer : (d) Total revenue is the maximum ;

Description : What condition might profit maximization not lead to shareholder wealth maximization?

Last Answer : Need answer

Description : If no. of rows are not equal to number of columns and the matrix elements are profit elements then the problem is: a. Balanced and Maximization Transportation problem b. ... Transportation problem c. Balanced and Maximization Assignment problem d. Unbalanced and Maximization Assignment problem

Last Answer : a. Balanced and Maximization Transportation problem

Description : For maximization in assignment problem, the objective is to maximize the a. Profit b. Optimization c. Cost d. None of the above

Last Answer : a. Profit

Description : If profit, sales, production, etc is given then it is _________ a. Balanced problem b. Unbalanced problem c. Maximization problem d. Minimization problem

Last Answer : c. Maximization problem

Description : Maximization problem, then convert into minimization table through _________ a. Row minimization b. Column minimization c. Regret matrix d. Profit matrix

Last Answer : c. Regret matrix

Last Answer : MR = 8.5%, MC = 8.835% .

Description : Super normal profits occurs when (a) Average revenue is more than average cost ; (b) Total revenue is maximum; (c) Total cost is minimum ; (d) MC is equal to MR 

Last Answer : (a) Average revenue is more than average cost ;

Description : 35. Which of the following is not a characteristic of the L P model a. Alternative courses of actions b. An objective function of maximization type c. Limited amount of resources d. Non-negativity condition on the value of decision variable

Last Answer : b. An objective function of maximization type

Description : 34. Maximization of objective function in an L P model means a. Value occurs at allowable set of decisions b. Highest value is chosen among allowable decisions c. Neither of above d. Both a & b

Last Answer : a. Value occurs at allowable set of decision

Description : Which of the following could not prevent a market from becoming perfectly competitive?

Last Answer : excessive information

Description : In a perfectly competitive market, individual consumers have _____.?

Last Answer : no influence over determining price

Description : The demand curve facing a perfectly competitive firm is - (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic

Last Answer : (4) perfectly elastic Explanation: A perfectly competitive industry is comprised of a. large number of relatively small firms that sell identical products. Each perfectly competitive firm is so small ... at the going market price. This translates into a horizontal or perfectly elastic demand curve.

Description : In a perfectly competitive market, a firm's - (1) Average Revenue is always equal to Marginal Revenue (2) Marginal Revenue is more than Average Revenue (3) Average Revenue is more than Marginal Revenue (4) Marginal Revenue and Average Revenue are never equal

Last Answer : (1) Average Revenue is always equal to Marginal Revenue Explanation: Average revenue is the amount money received by a firm per unit of output sold. Marginal revenue is the change in total revenue ... . In a perfectly competitive market, a firm's Average Revenue is always equal to Marginal Revenue.

Description : Which of the following industries most closely approximates the perfectly competitive model? (1) Automobile (2) Cigarette (3) Newspaper (4) Wheat farming

Last Answer : (4) Wheat farming Explanation: In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homo- ... homogenous products and neither consumer nor producer has influence over prices, they are simply price takers.

Description : A market in which there are only 2 sellers of a good is known as: a) monopoly b) monopsony c) duopoly d) perfectly competitive View Answer / Hide Answer

Last Answer : c) duopoly

Description : A market in which there is only one seller of a good is known as: a) monopoly b) monopsony c) duopoly d) perfectly competitive

Last Answer : a) monopoly

Description : If the cross price elasticity of demand for two product is negative, then the two products are ………………. (a) Complementary to each other ; (b) Perfectly substitute for each other; (c) Completely competitive ; (d) Unrelated 

Last Answer : (a) Complementary to each other ;

Description : The demand curve facing a perfectly competitive firm is (1) downward sloping (2) perfectly inelastic (3) a concave curve (4) perfectly elastic

Last Answer :  perfectly elastic

Description : In a perfectly competitive market, a firm’s (1) Average Revenue is always equal to Marginal Revenue (2) Marginal Revenue is more than Average Revenue (3) Average Revenue is more than Marginal Revenue (4) Marginal Revenue and Average Revenue are never equal

Last Answer : Average Revenue is always equal to Marginal Revenue

Description : In L.D.R., the profit will be maximum when— (A) MC = MP (B) MC > MP (C) MP = TP (D) MP > TP

Last Answer : (D) MP > TP

Description : Why PM-MC meters can't be used for AC measurements?

Last Answer : It wont work for AC measurements. Not designed for ACapplication

Description : Afirm will close down in the short run, if AR is less than (a) AC (b) AVC © MC (d) none of the above

Last Answer : (b) AVC

Description : .All of the following curves are U-shaped, except the (a) AFC curve (b) MC curve © AC curve (d) AVC curve

Last Answer : (a) AFC curve

Description : The slope of total variable cost curve equals…………….. (a) AVC ; (b) MC ; (c) AC ; (d) MPP 

Last Answer : (b) MC ; 

Description : The Diamond Model assumes that: a) Multinational firms must develop global strategies based only on home demand conditions. b) Multinational firms must pay less attention to global consumers than domestic ... a firm plays a key role in shaping that firm's competitive advantage in global markets.

Last Answer : The national home base of a firm plays a key role in shaping that firm's competitive advantage in global markets.

Description : Dynamic capabilities refer to: a) the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. b) the link between ... underlie a company's multiple production lines and critically underpin the firm's competitive advantage

Last Answer : the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.

Description : A marketing unit can be organised according to functions, products, regions, and A)sales. B)target markets. C)competitive units. D)types of customer.

Last Answer : D)types of customer.

Description : What is required to ensure competitive advantages in specific markets? (A) Access to capital (B) Common office buildings (C) Superior knowledge (D) Common metals

Last Answer : (C) Superior knowledge

Description : If Northerners found the three-fifths rule and slavery wrong Southerners were perfectly willing to drive home the logic of emancipation Emancipate them and they stay where they are and two-fifths of t?

Last Answer : Need answer

Description : Long-term equilibrium of an Industry under a perfectly market conditions in achieved when (a) All the firms are earning normal profit ; (b) All the firms are in equilibrium ; (c) There is no further entry or exit of firms from the industry ; (d) All the three

Last Answer :  (d) All the three

Description : What metric should be used by an app developer to measure the maximization of Ad Revenue on his app? A. eCOM B. eCPA C. eCPI D. None of the above

Last Answer : B. eCPA

Description : Value maximization theory fails to address the problem of A.self-serving management. B.risk C.uncertainty D.sluggish growth.

Last Answer : A.self-serving management.

Description : Maximization assignment problem is transformed into a minimization problem by a. Adding each entry in a column from the maximization value in that column b. Subtracting each entry in a column from the maximum ... entry in a column from the maximum value in that table d. Any one of the above

Last Answer : c. Subtracting each entry in a column from the maximum value in that table

Description : If in an assignment problem, number of rows is not equal to number of columns then a. Maximization problem b. Problem is unbalanced c. Problem is degenerate d. Optimum solution is not possible

Last Answer : c. Problem is degenerate

Description : If cost, time, etc is given, then it is ________ a. Balanced problem b. Unbalanced problem c. Maximization problem d. Minimization problem

Last Answer : d. Minimization problem

Description : What is the m What is the major differe ajor difference in focus bet nce in focus between locat ween location decision ion decisions in the service sect s in the service sector and in or and ... minimization d)The focus in manufacturing is on raw materials, while the focus in service is on labour

Last Answer : c)The focus in service is revenue maximization, while the focus in manufacturing is cost minimization

Description : Which statute governs external commercial borrowing? e) Foreign Exchange Maximization Act, 1972 f) Foreign Exchange Management Act, 1999 g) Foreign Exchange Minimization Act, 2004 h) Foreign Exchange Regulation Act, 1972

Last Answer : f) Foreign Exchange Management Act, 1999

Description : The given maximization assignment problem can be converted into a minimization problem by (A) subtracting each entry in a column from the maximum value in that column. (B) subtracting each entry in the table ... value in that column. (D) adding maximum value of the table to each entry in the table.

Last Answer : (B) subtracting each entry in the table from the maximum value in that table.

Description : Which of the following constitutes Foreign Direct Investment? A. A speculator trying to make a profit by buying company shares on a foreign stock exchange. B. A UK energy company buying territory ... D. A company signing an agreement with a wholesaler to distribute its products in foreign markets.

Last Answer : A tourist purchasing foreign currency to spend on a holiday abroad.

Description : In a specific strategic market plan, a profit centre that is self-supporting in terms of sales, markets, production, and other resources is known as: A)profit unit. B)strategic business unit. C)marketing unit. D)small business unit.

Last Answer : B)strategic business unit.

Description : Individuals and business organisations that buy finished goods and resell them to make a profit without changing the physical characteristics of the product as classified as: A)reseller markets B)institutional markets C)producer markets D)government markets

Last Answer : A)reseller markets

Description : 1) Individuals and business organisations that purchase products for the purpose of making profit either by using the products to produce other products or by using them in their operations are classified as: A)reseller markets B)institutional markets C)producer markets D)government markets

Last Answer : C)producer markets

Description : The statement --- if forces acting on a point can be represented in magnitude and direction by the sides of a polygon taken in order then their resultant will be represented in magnitude and direction by the closing ... 's law of forces c.Law of polygon of forces d.D'Alembert's rule e.Lami's theorem

Last Answer : c. Law of polygon of forces