Economics

✅ The correct answer is C.
Supply is increasing function of price. The higher the price of a good, the more a firm is willing to produce and offer, hence, the supply function is upward sloping. In fact, in the perfect competition market, the supply curve is the marginal cost curve. Increasing production is only profitable if the good can be sold at a higher price.

✅ The correct answer is D.
In case of monopoly, Marginal revenue is always less than average revenue. A monopolist’s marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit of output.

✅ The correct answer is C.
The transformation of resources into economic goods and services is called Production. Production is the method of turning raw materials or inputs into finished goods or products in a manufacturing process.

✅ The correct answer is D.
The producer is in equilibrium at a point where the cost line is Tangent to isoquant.

✅ The correct answer is B.
125000-25000-35000 = 65000 = explicit cost.

Total cost = implicit cost + explicit cost.

✅ The correct answer is C.
Large number of substitutes keeps the price-elasticity of demand for a good high.

✅ The correct answer is B.
If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year’s time is 90.9. “Present value” of a rupee received a year from now, is equal to only 90.9 paise [100/(1.1)].

✅ The correct answer is A.
If price and total revenue move in the same direction, then demand is Inelastic. If you decrease the good’s price, a large increase occurs in quantity demanded, and total revenue increases.

✅ The correct answer is A.
Robbins expressed the view that ‘Economics should be neutral between ends’. He believes that Economics is concerned merely with the utilization of scarce means far the satisfaction of multiple ends.

✅ The correct answer is D.
The situation of monopolistic competition is created by Small number of producers of a commodity, Lack of homogeneity of the product produced by different firms and Imperfection of the market for that product.