1. A total cost schedule can be derived from one information given in

2. A firm finds that the total cost of producing 99 units of output is ' 995. The average cost of producing 100 units of output is ' 10. This means that the marginal cost at this level of output is

3. In price d iscrim in atio n un der discrim inating monopoly, given that the elasticity of demand in market I is 5 and in market II is 2.5 measured in absolute terms, how are the prices in the two markets related to each other?

4. Application of the 'Marginal-Cost pricing' principle in a decreasing cost industry would lead to

5. When the law of demand operates the demand curve

6. When an individual's income falls (while everything else remains the same), his demand for an inferior goods

7. Assume that a profit maximising monopolist is in short-run equilibrium. Now, the government, in order to mobilize more resources, impose a Rs. 5 lakh per annum lumpsum tax on the monopolist. Immediate (short-run) effect of this policy on the monopolist would be such that he would

8. The meaning of the word 'economic' is most closely connected with the word

9. Decreasing costs of production are due to

10. Monopoly is based on

11. The implication of the kinked demand curve is reflected in a discontinuity in the

12. The given diagrams represent income-consumption curves for two commodities X and Y Consider the following statements based on the diagrams. The curve in diagram
1. I shows the commodity X as normal
2. I shows the commodity Y as normal
3. II shows the commodity X as normal
4. II shows the commodity Y as normal Of these statements:

13. If an individual seller in a perfectly competitive market wishes to double his sales, he would

14. In the given Figure, DD is the demand curve for commodity X. As the price of the commodity falls from P1 to P2 the quantity demanded increases from Q1 to Q2. The area shaded vertically is found to be much larger than that shaded horizontally. The curve between E1 and E2

15. When both the price of a substitute and the price of a complement of commodity X rise, the demand for X

16. Arc elasticity gives a better measure of point elasticity of a curvilinear demand curve as

17. In case the two commodities are good substitutes, cross-elasticity will be

18. A straight line, downward-sloping demand curve implies that, as price falls, the elasticity of demand

19. In the case of an inferior good

20. 'Discriminating Monopoly' is possible if two markets have

21. Match List I with List II and select the correct answer using the codes given below the lists List I List II (a) Expansion in 1. Movement on the same demand demand curve from left to right (b) Contraction in 2. Movement on the same demand demand curve from right to left (c) Increase in 3. Sh ift in the dem and demand curve to the right (d) Decrease in 4. Sh ift in the dem and demand curve to the left Codes: (a) (b) (c) (d)

22. If there were no changes in the quantity of food sold even when its price falls, we would know that

23. In a typical demand schedule, quantity demanded

24. The elasticity of supply for the supply function of q = 20p is

25. The additivity of utility in the Marshallian analysis is based on the assumptions of