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Test Started Submitted Status Attempt Score Time Elapsed Instructions Mr. Anand Balaso Chavan Managerial Economics (Micro) Exercise - 2 1/21/14 4:57 PM 1/21/14 6:49 PM Completed 37 out of 38 points 1 hour, 51 minutes.

Question 1 1 out of 1 points The cost associated with the use of variable factors is called __________ cost. Answer Selected Answer: variable

Question 2 1 out of 1 points "Cost including material, manpower, semi finished goods and so on is called ___________ cost." Answer Selected Answer: variable

Question 3 1 out of 1 points Salary of top management is a type of ____________ cost. Answer Selected Answer: fixed

Question 4 1 out of 1 points "Which of the following is incurred by company irrespective of the level of production, as it is fixed in nature?"

Answer Selected Answer: Fixed cost Question 5 1 out of 1 points Production Process of any firm is associated with _______. Answer Selected Answer: Question 6 1 out of 1 points What is the Total Cost (TC) of any firm a summation of? Answer Selected Answer: Total Fixed and Total Variable cost Question 7 1 out of 1 points Which of the following shows the additional cost of each addition unit of output a firm produces? Answer Selected Answer: Marginal cost Question 8 1 out of 1 points Which of the following plays an important role for evaluation of occurrence of cost in the firm? Answer Selected Answer: Marginal cost Question 9 1 out of 1 points What is the Average Total Cost (ATC) a summation of? Answer cost

Selected Answer: Average Fixed Cost and Average Variable Cost Question 10 0 out of 1 points A firm experiences economies of scale when long-run average cost declines as the firm expands _______. Answer Selected Answer: Question 11 1 out of 1 points Which of the following is very commonly used in a perfect competition market? Answer Selected Answer: Price taker Question 12 1 out of 1 points __________ firm is entirely opposite to the perfect competition firm and has no rivals as it is the only firm in its industry. Answer Selected Answer: Question 13 1 out of 1 points "In short run, a perfectly competitive firm will continue its quantity of output, till the point of its marginal revenue equals marginal cost." Answer Selected Answer: True Question 14 1 out of 1 points "Distribution of natural gas, water and electricity are examples of which of the following?" Answer monopoly outputs

Selected Answer: Natural monopoly Question 15 1 out of 1 points Under which condition does a monopoly market attain maximum profit ? Answer Selected Answer: Slope of the marginal revenue is less than slope of marginal cost curve Question 16 1 out of 1 points When is the marginal revenue curve same as the demand curve? Answer Selected Answer: Price is equal to marginal revenue Question 17 1 out of 1 points When will a firm stop producing or increasing its product? Answer Selected Answer: Marginal revenue is equal to marginal cost Question 18 1 out of 1 points Economic profits and losses play a crucial role in the model of perfect competition. Answer Selected Answer: True Question 19 1 out of 1 points Which firm is entirely opposite to the perfect competition firm? Answer Selected Answer:

Monopoly Question 20 1 out of 1 points "Economic profits in a system of perfectly competitive markets will, in the long run, be driven to ______________ in all industries." Answer Selected Answer: Question 21 1 out of 1 points Which of the following firm has no rivals in its industry? Answer Selected Answer: Monopoly firm Question 22 1 out of 1 points A firm sets and puts the price as per the output it generates which is called ___________ Setter. Answer Selected Answer: Question 23 1 out of 1 points A firm that confronts economies of scale over the entire range of outputs demanded in its industry is a natural ________. Answer Selected Answer: Question 24 1 out of 1 points An expenditure that has already been made and that cannot be recovered is called ________ cost. Answer Selected Answer: sunk monopoly price zero

Question 25 1 out of 1 points Profit maximisation is always based on ___________ Decision Rule. Answer Selected Answer: marginal

Question 26 1 out of 1 points "As per the Marginal Decision Rule, additional unit of goods should be produced as marginal revenue of additional unit exceeds the ____ cost." Answer Selected Answer: marginal

Question 27 1 out of 1 points Which of the following is not a factor which affects the monopoly firm? Answer Selected Answer: Manpower

Question 28 1 out of 1 points Profit maximisation is always based on what? Answer Selected Answer: Marginal decision rule

Question 29 1 out of 1 points Which of the following is the only way to measure the degree to which output in an industry is concentrated among a few firms? Answer Selected Answer: Concentration ratio

Question 30

1 out of 1 points The degree to which output in an industry is concentrated among a few firms is to use a ratio called _________ Ratio. Answer Selected Answer: Question 31 1 out of 1 points Which is the equation for concentration ratio? Answer Selected Answer: CRm=s1+s2+s3+ -------+sm (Where s = Market share of firm) Question 32 1 out of 1 points A choice based on the recognition that the actions of others will affect the outcome of the choice and that takes these possible actions into account is called _________ choice. Answer Selected Answer: Question 33 1 out of 1 points Which of the following is an analytical approach through which strategic choices can be assessed? Answer Selected Answer: Game theory Question 34 1 out of 1 points Once the firm implements a strategic decision there will be an output called as _____. Answer Selected Answer: False Question 35 1 out of 1 points strategic concentration

Which of the following application is used to explain the game theory? Answer Selected Answer: Prisoners dilemma Question 36 1 out of 1 points _______ and input markets are frequently classified according to the number of sellers and buyers. Answer Selected Answer: Question 37 1 out of 1 points One of the important concepts of _________ market is the Concentration Ratio which is the percentage of market share owned by the largest firms in an industry. Answer Selected Answer: Oligopoly Question 38 1 out of 1 points The ________ Total Cost (ATC) at an output of Qm units is ATCm. Answer Selected Answer: average product

Tuesday, January 21, 2014 6:49:39 PM IST