Tag: liquidity preference and profit

Questions Related to liquidity preference and profit

Market demand curve shows the ______.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. quantities that consumers as a whole are willing to purchase at different prices.

  2. demand for a commodity in an area

  3. demand of the market in different conditions

  4. both A and B

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Correct Option: A
Explanation:

The market demand curve is the addition of all the individual demand curves in the market. It shows the quantity demanded by the individuals at a given price point. Hence, the market demand curve shows the quantities that consumers as a whole are willing to purchase at different prices.

 The ________ curve will lie exactly on the market demand curve.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. TR

  2. MR

  3. AR

  4. none of these

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Correct Option: C

Which of the following is true?

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. AR= Price

  2. MR can be negative

  3. AR can be negative

  4. TR can be negative

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Correct Option: A,B

The actual return of an investor is reduced sometimes as the prices of the commodities go up all of a sudden. In financial sector this type of phenomenon is known as _____________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. probability risk

  2. market risk

  3. inflation risk

  4. credit risk

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Correct Option: B

Change in TR due to the sale of an additional unit is termed _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. average revenue

  2. marginal revenue

  3. additional demand

  4. both B and C

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Correct Option: B

When the demand curve of a pure monopoly firm is elastic, marginal revenue will be _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. negative

  2. positive

  3. zero

  4. any of the above

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Correct Option: B

For a monopoly firm the marginal revenue curve _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. overlaps AR curve

  2. is above the AR curve

  3. lies half way between AR curve and the Y axis

  4. is parallel to X axis

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Correct Option: C

The marginal revenue curve of first degree price discriminating monopoly is __________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. U shaped

  2. straight line

  3. same as its supply curve

  4. equal to its demand curve

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Correct Option: D

Marginal revenue of a pure monopoly is less than its price because _________.

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. to sell more it reduces prices

  2. fear of government intervention

  3. fear of losing customer base

  4. its commitment toward social justice

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Correct Option: A

Which of the following faces a downward sloping demand curve?

economics theories of distribution liquidity preference and profit revenue and revenue curves simple monopoly and commodity market

  1. Firm in a competitive market

  2. Firm in a monopoly market

  3. Both (A) and (B)

  4. None of the above

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Correct Option: B