managerical-economics-mcq-test-questions-with-answers














































1 In economic terms what does the term ‘market’ imply?





















Geographical location
Direct contact point between buyers and sellers
Selling place for goods
Network of dealings between buyers and sellers













2 The distinction between Perfect and imperfect market is based on which of the following?





















Extent of competition
Location
Size
Nature of dealings













3 Under perfect competition individual seller’s decision to raise or lower the supply will have ____ effect on market price





















Significant
Insignificant
Positive
Negative













4 Under Perfect Competition transport costs are_________





















Maximum
Minimum
Zero
Negative













5 Which of the following is not a condition to be fulfilled for Pure Competition?





















Existence of large number of buyers & sellers
Freedom of entry and exit
Perfect mobility of factors of production
Homogeneity of the product













6 At the price of Rs.70 quantity demanded and supplied of product A is 275 units. Hence what will the price of Rs.70 be called?





















Competition Price
Maximum Price
Minimum Price
Equilibrium Price













7 Tendency towards prevalence of one price is the acid test of________?





















Perfect competition
Monopolistic competition
Monopoly competition
Oligopolistic competition













8 Increase in Demand for a product results in _______





















Competition Price
Maximum Price
Minimum Price
Market Price













9 In a very short period of time when supply is inelastic to increase in demand, new market price is _______original market price of a product





















Equal to
Coincides with
Above
Below













10 If at the price of Rs.20 per unit 75 units were sold per month of a product then what would be the total annual revenue?





















Rs.240
Rs. 900
Rs.18000
Rs. 1500




 



















































1 Which of the following statements about Average Revenue are true?





















Average Revenue is Equal to Total Revenue
Average Revenue is Equal to demand for a product
Average Revenue is Equal to Supply of a product
Average Revenue is nothing but the Price of a product













2 Under Perfect competition, Average Revenue curve _______ Marginal Revenue Curve.





















Equal to
Higher than
Lower than
Parallel to













3 Under Monopoly Marginal Revenue curve ______ Average Revenue curve





















Lies above
Lies below
Perpendicular to
Parallel to













4 If consumer purchases 100 units of product X for Rs.1000 and gets 101st product free then Marginal Revenue__________





















Parallel to X axis
Tangent to X axis
Cuts X axis
Horizontal to X axis













5 Under monopoly Average Revenue is a straight line then what where is Marginal Revenue curve positioned?





















Parallel to X axis
Tangent to X axis
Lies above Average Revenue line
Lies half way between Average Revenue and Y axis













6 Objective of Sales Maximization implies maximization of _______





















Marginal Revenue
Units sold
Average Revenue
Total Revenue













7 Sales Maximization objective of a firm implies that, market prices will be________





















Higher than prices under Profit maximization objective
Lower than prices under Profit maximization objective
Equal to prices under Profit maximization objective
Dependent on prices under Profit maximization objective













8 Under Oligopoly what must be the objective of the firm?





















Maximization of Profits
Maximization of Sales
Maximization of Revenue
Stable & secure Profits













9 Which of the following is an assumption under Behavioural theory?





















Firm has only one objective of Profit maximization
Firm has only one objective of Sales maximization
Firm has only one objective of Productivity maximization
Firm has several objectives including sales, profit, productivity etc













10 The objective function of the firm in terms of ordinal utility is defined under which of the following approach?





















Behavioural Theory
Quiet Life & stable profit approach
Utility Index Theory
Theory of consumer choice













11 If total cost incurred for producing 100 units is Rs.2000 and after selling all the 100 units, firm is able to just cover the cost. In such situation it is said that firm has reached_______





















Maximum Revenue point
Minimum Cost point
Breakeven Point
Maximum Profit point













12 Breakeven analysis assumes that __________





















Fixed Cost changes over certain range of output
Variable Cost varies with volume of output
Price does not remain constant
Options 2&3



Editor: sonia singh Added on: 2018-12-07 16:51:27 Total View:372







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