Top 250+ Solved Managerial Economics 1 MCQ Questions Answer
Q. The distinction between variable cost and fixed cost is relevant only in
a. long period
b. short period
c. medium term
d. mixed period
Q. The condition for the long run equilibrium of a perfectly competitive firm
a. Price=MC=AC
b. Price=TC
c. MC=AVC
d. MC=MR
Q. Product differentiation is the important feature of
a. monopoly
b. perfect competition
c. monopolistic competition
d. monophony
Q. The law of diminishing returns applies more to
a. agriculture
b. industry
c. services
d. commerce
Q. The opportunity cost of a given activity is
a. the value of next best activity
b. the value of material used
c. the cost of input used
d. none of these
Q. The function of combining the other factors of production is done by
a. land
b. labour
c. Capital
d. Entrepreneurship
Q. The factors used in the production
a. Land and labor
b. capital & entrepreneurship
c. both a&b
d. only capital
Q. In a perfect market both buyers and sellers are
a. price maker
b. price giver
c. price taker
d. all the above
Q. Which is the determinant of the pricing policy of a firm?
a. Channel of distribution
b. Age of product
c. Consumer association
d. All of these
Q. Information for pricing decisions involves:
a. Product information
b. Market information
c. Information at the micro level
d. All of these
Q. Which is the reason of skimming price?
a. Inelastic demand
b. Diversion of market
c. Safer price policy
d. All of these
Q. Which is the condition of for market penetration?
a. High price elasticity of demand in the short run
b. Savings in production costs
c. Threat of potential competition
d. All of these
Q. Production may be defined as an act of:
a. Creating utility
b. Earning profit
c. Destroying utility
d. Providing services
Q. The demand curve of a firm in the case of perfect competition is:
a. Parallel to output axis
b. Increasing with the output axis
c. Decreasing with the output axis
d. Complete