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1. Important Concepts in Microeconomics
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5
1.
If a commodity has more number of substitutes, the demand for this commodity will be _______?
more elastic
less elastic
inelastic
perfectly elastic
2.
A monopolist will be able to maximize his profits when _________?
His output is maximum
He charges a Higher price
His average cost is minimum
His marginal cost is equal to the marginal revenue
3.
Which of the following items is characterised by highest income elasticity of demand among others?
Car
Milk
Paddy
Tobacco
4.
Which among the following is an example of micro-economic variable?
National Income
Consumer's Equilibrium
Aggregate Supply
Employment
5.
Which of the following says that the marginal product of a factor input initially rises with its employment level. But after reaching a certain level of employment, it starts falling?
Law of diminishing marginal product
Law of variable proportions
The Short Run
The Long Run
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