Important questions about Business Economics - Business Economics Section 2. Business Economics - Business Economics Section 2 MCQ questions with answers. Business Economics - Business Economics Section 2 exam questions and answers for students and interviews.
A : Under perfect competition, a firm determine its price where AR = IVIR
B : In a perfectly competitive industry, a firm is in equilibrium in the short run only when it is AC = AR = IVIR = MC.
C : The short-run supply curve has a negative slope
D : A firm is a price-taker under perfect competition.
A : Ratios of marginal utilities and price of the respective goods are equal
B : The ratio of marginal utilities of the two goods is equal to the ratio of their respective prices
C : The marginal rate of substitution is equal to the ratio of prices of the two goods.
D : The marginal rate of substitution is decreasing.
A : Utility always diminishes whether something is consumed or not
B : Total utility diminishes with the consumption of every additional unit
C : Utility first increases and after that diminishes at every point
D : The additional benefit which a person derives from a given increase of his stock of a thing diminishes with every increase in the stock that he already has.