Micro PYQ — Page 16

For the firm to continue to produce, in the long run, price must be greater than the average cost (p > AC) and in the short run, price must be greater than the ......

The price elasticity of supply of a commodity is 2.5. At a price of Rs.5 per unit, its quantity supplied is 300 units. What will be its quantity supplied at a price of Rs.4 per unit?

A firm is operating in a market where it can sell more only by lowering the price of the good. Arrange the changes in total revenue of this firm in a sequential order. (A) Total revenue falls. (B) Total revenue starts from origin. (C) Total revenue increases at a diminishing rate. (D) Total revenue reaches its maximum. Choose the correct answer from the options given below:

Which of the following indicates the slope of Budget Line?

A rational consumer reaches to equilibrium when:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Excess demand | (I) Supernormal profits | | (B) Excess supply | (II) Perfect competition | | (C) Entry of new firms in the market | (III) Price tends to fall | | (D) Price taker | (IV) Price tends to rise | Choose the correct answer from the options given below:

In the determination of a particular variable, the assumption of "ceteris paribus" stands for.

As long as decreasing returns to scale operates, as the firm increases output, the average cost must be ................

Identify the incorrect statement about the relation between Marginal Product(MP) and Average Product (AP).

Match List-I with List-II | List-I | List-II | | --- | --- | | (A) Payments by a firm for inputs. | (I) Cost of production | | (B) Output sold by a firm in the market. | (II) Revenue | | (C) Inputs are transformed into output. | (III) Production | | (D) Objective of a firm to maximize. | (IV) Profit | Choose the **correct** answer from the options given below:

The total satisfaction derived from consuming the given amount of commodity X is known as _______

Which of the following statements are correct: (A) Consumer's preferences are monotonic: If and only if between any two bundles, the consumer prefers the bundle which has more of at least one of the goods and no less of the other good as compared to the other bundle. (B) The tendency for the MRS to fall with increase in quantity of goods is known as the Law of Diminishing Marginal Rate of Substitution. (C) A decrease in income causes a parallel outward shift of the budget line. (D) The budget set is the collection of all bundles that the consumer can buy with their income at the prevailing market prices. Choose the correct answer from the options given below:

The short run supply curve is represented as? 1. The rising part of the marginal cost curve. 2. The rising part of the marginal cost curve from and above the minimum average variable cost curve. 3. The rising part of the marginal cost curve from and above the minimum average cost curve. 4. The marginal cost curve.

The wage rate at which the labour market is in equilibrium is a point where. 1. Labour demand=0 2. Labour Demand= Labour Supply 3. Labour Supply=Labour Demand=0 4. Wages= Marginal Revenue from labour x Price

Average fixed cost curve is actually a ................... curve:

The market determined wage rate is \$500 per month whereas the minimum wage fixed by the government is $\$450 per month. As a result of this government intervention,

Arrange the following money supply measures in chronological order. (A) Excess supply will prevail in the economy. (B) The tendency of prices to change to restore equilibrium. (C) Suppose market supply is greater than market demand at a given price. (D) Hence, the market is not in equilibrium. Choose the correct answer from the options given below:

Budget Set is __________

If demand for salt increases, and there is no change in the equilibrium price in the market, how does it affect the market?

Floor prices are meant for the welfare of

The economic concept at which the consumer is willing to substitute one good for the other?

From the following statements about a firm's supply curve, select the correct statements: (A) Technological progress is expected to shift the supply curve of a firm to the right. (B) An increase in input prices is expected to shift the supply curve of a firm to the left. (C) A decrease in input prices is expected to shift the supply curve of a firm to the left. (D) The imposition of a unit tax shifts the supply curve of a firm to the left. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Slope of Budget line | (I) $P_1X_1 + P_2X_2 \leq M$ | | (B) Horizontal intercept of budget line | (II) $M/P_2$ | | (C) Vertical intercept of budget line | (III) $-\frac{P_1}{P_2}$ | | (D) Budget constraints | (IV) $M/P_1$ | Choose the correct answer from the options given below:

Given the production function $f(tx_1, tx_2) > tf (x_1, x_2)$, what it exhibit: