Question 4546:

The cross-elasticity of demand between complementary good is ____________

A. Unitary
B. Positive
C. Zero
D. Negative

Question 4547:

In a particular competitive market, the firm is in long-run equilibrium at the output where ____________

A. Marginal cost is minimum
B. Average cost is minimum
C. Total revenue is maximum
D. Marginal revenue is maximum

Question 4548:

The price mechanism is more effective in achieving efficient performance of the economy than the planning mechanism because of the ____________

A. Role of supply and demand
B. Role of material incentive
C. Existence of buyers and sellers
D. Role of money

Question 4549:

A firm with marginal cost equal to its marginal revenue will produce the equilibrium output if it is in ____________

A. Pure competition only
B. Pure monopoly only
C. Monopolistic competition only
D. Any type of market

Question 4550:

If the price elasticity of demand for a certain commodity is less than unity, then ____________

A. An increase in the price of the commodity will raise the total revenue of the producer
B. An increase in price leaves the total revenue unchanged
C. A decrease in price leaves the total revenue of the supplier unchanged
D. A decrease in price leaves the total revenue constant