Micro PYQ — Page 14

Select the INCORRECT condition for profit maximisation in the perfect market. 1. The price must equal to MC. 2. Marginal cost must be non-decreasing. 3. Price must be less than the average cost. 4. Price must be greater than the average cost.

The relation between the consumer's optimal choice of the quantity of a good and its price is called ?

The slope of Production Possibility curve is represented by ___________.

In the long run, average cost must be rising as the firm increases output as long as the.......... operates.

As long as average cost is falling

In a situation when MRSxy > Px / Py, the consumer would react by:

For a price-taking firm, the market price is equal to marginal revenue and ......

Two indifference curves can never intersect each other as ............... 1. They give the same level of satisfaction. 2. They give different levels of satisfaction. 3. They are concave to the origin. 4. They are convex to the origin.

Choose the incorrect option from the following with reference to production in the short run.

Choose the correct statements from the options given below in terms of the shapes of the short run cost curves. (A) Average fixed cost curve is a rectangular hyperbola. (B) Total fixed cost is horizontal straight line. (C) Average variable cost is upward sloping. (D) Marginal cost is U shaped. Choose the correct answer from the options given below:

Change in total cost per unit of change in output is defined as:

Arrange the following statement of government intervention in the form of price control. (A) The government sets floors or minimum prices for these goods and services. (B) A fall in price below a particular level is not desirable. (C) The price charged for a particular good or service is called the price floor. (D) The government imposed a lower limit on the price. Choose the correct answer from the options given below:

When the price elasticity of supply is equal to zero. Then.......... 1. Supply curve is sloping downward. 2. Supply curve is horizontal. 3. Supply curve is upwards sloping. 4. Supply curve is vertical.

What is the shape of Average Revenue (AR) curve under perfect competition?

Chronologically, arrange the following statements in the context of shape of AP curve. (A) MP starts falling, the AP continues to rise as long as MP remains higher than AP. (B) At the first level of output, the MP and the AP are the same. (C) MP fall sufficiently, its value becomes less than the AP and the AP also falls. (D) MP rises, AP being the average of marginal products, also rises, but rises less than MP. Choose the correct answer from the options given below:

A firm wishes to maximize its profit, find the correct conditions from the following, that must be held by the firm at q₂ at which its profit is maximum. (A) The price must be less than the average variable cost (B) The price must be greater than the average variable cost (C) Marginal cost must be non-decreasing (D) The price, p, must equal MC Choose the correct answer from the options given below:

Public goods, as distinct from private goods, are collectively consumed. Two important features of public goods are:

Suppose the Income of consumers in a market increase. How will this effect the equilibrium price of the commodity, assuming that it is a normal good? (A) There is excess demand at the existing price. (B) Rising price leads to contraction in demand and expansion in supply and a new equilibrium price is attained, which is higher than the initial price. (C) The demand curve shifts rightward. (D) There is upward pressure on the price and price starts rising. Choose the correct answer from the options given below:

Good X and Y are considered to be substitutes by a consumer. He is currently consuming good X. If the price of Good Y decreases, then arrange the following in correct sequence. (A) Demand for Good X decreases. (B) Consumer finds Good Y to be relatively cheaper than Good X. (C) Demand curve for Good X shifts to the left. (D) Consumer shifts from Good X to Good Y. Choose the correct answer from the options given below:

Arrange the following stages of Consumer's Equilibrium in the correct sequence under the utility analysis (A) Marginal Utility becomes equal to the price of a commodity (B) Marginal utility, derived from a commodity X is greater than Px (C) Increase the consumption of commodity X (D) The consumer reallocates expenditure to maximize satisfaction. Choose the correct answer from the options given below:

Which of the following is an example of floor price?

In given production function $q = f(x_1, x_2)$ what is depicted by $f(tx_1, tx_2) < tf(x_1, x_2)$.

Suppose the demand and supply curves of salt are given by: $Q_d = 1000 - p$ $Q_s = 700 + 2p$ Find the equilibrium price and quantity.

If supply curve shifts leftward and demand curve shifts rightward then how it will affect the pricing?