Question # 1

A monopolistically competitive firm in the long run equilibrium:

Will make negative profit.

Will make zero profit.

Will make positive profit

Any of the given are possible.

If pen and ink are complements, then an increase in the price of pen will cause:

An increase in the price of ink

Less ink to the demanded at each price

A decrease in the demand for pen

A rightward shift in the demand curve for ink

In 2005-06, the percentage of total investment to GDP was:

8 percent

10percent

15percent

20percent

The elasticity of demand of durable goods is

More than unity

Equal to unity

Less than unity

Zero

A firm is charging a different price for each unit purchased by a consumer.This is called:

First-degree price discrimination

Second-degree price discrimination

Third-degree price discrimination

None of the given options

Who criticized Prof. Robbin's definition?

Marshall, J.B

Beveridge

Clark

Pigeou

NAT II Management Science Economy MCQs With Answers