NAT II Management Science Economy With Answers

NAT II Management Science Economy

Sr. # Questions Answers Choice
1
Under the kinked demand curve model, an increase in marginal cost will lead to:
 <div>An increase in output level and a decrease in price.</div> <div>A decrease in output level and an increase in price.</div> <div>A decrease in output level and no change in price.</div> <div>Neither a change in output level our a change in price.</div>
2
In monopoly, which of the following is NOT true?
 Products are differentiated <div>There is freedom of entry and exit into the industry in the long run</div> The firm is a price maker There is one main seller
3 The price elasticity of demand for any good must be less than or equal to zero unless: The good is a necessity. The good is a luxury. The good is a Ciffen good. None of the given options.
4
The market structure in which strategic considerations are most important is:
 Monopolistic competition. Oligopoly. Pure competition. Pure monopoly.
5
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.
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