If a firm is faced with an elastic supply curve, its revenue will
Be supplied at a higher price
Double at a higher price
Increase by more than the percentage increase in price
Equal percentage change in price
Correct answer is C
No explanation has been provided for this answer.
Ranking is the method use in measuring
marginal utility
Ordinal utility
Cardinal utility
Total utility
Correct answer is B
In ordinal utility, the satisfaction a consumer obtains after consuming various commodity cannot be measured in numbers, but can be ranked in order of preference. Ordinal utility uses rankings instead of values.
Minimum price legislation by government will
Reduce supply
Increase supply
Reduce demand and create surplus
Increase demand and create scarcity
Correct answer is D
To prevent prices from falling further, the government may adopt 'minimum price legislation' to protect the interests of farmers or producers or suppliers. The immediate effect of this price ceiling is the emergence of excess demand or persistent shortage of the commodity.
When a consumer is at equilibrium, the MRSxy is equal to the
Sum of the prices
Product of the two prices
Ratio of the two prices
Difference of the two prices
Correct answer is A
No explanation has been provided for this answer.
In the process of production, total output is at maximum when
MP=0
MP > 0
AP = 0
AP > 0
Correct answer is A
When the MP becomes zero, Total Product reaches its maximum.