Managerial Economics · Quiz 2 · Jan 2024

True

False

True

False       **Managerial Economics** **Section Id :** 64065353067 **Section Number :** 14 **Section type :** Online **Mandatory or Optional :** Mandatory **Number of Questions :** 10 **Number of Questions to be attempted :** 10 **Section Marks :** 25 **Display Number Panel :** Yes **Section Negative Marks :** 0 **Group All Questions :** No **Enable Mark as Answered Mark for Review and** Yes **Clear Response :** **Maximum Instruction Time :** 0

Quasi linear preferences are linear in one good and non‐linear in other good

Marginal utility changes for a monotonic transformation of the utility function

MRS does not change for a monotonic transformation of utility function

All of these

The fraction of quantity tax paid by buyers rises as supply becomes less own‐ price elastic

The fraction of quantity tax paid by buyers rises as demand becomes more own‐price elastic

Both the fraction of quantity tax paid by buyers rises as supply becomes less own‐price elastic & the fraction of quantity tax paid by buyers rises as demand becomes more own‐price elastic

None

A profit‐maximizing monopoly will produce that output for which marginal cost equals marginal revenue

A natural monopoly occurs when one firm can supply the entire market more cheaply than can a number of firms

A monopolist always produces in the elastic region of market demand curve

All of these

I

II

Both I and II

None

1

2

3

4

($8.5, $10.5)

($8.5, $11.5)

($8.5, $12.5)

($8.5, $13.5)

R&D costs are sunk costs so do not enter the pricing decision

The elasticity of demand you face for Ageless is going to rise when your patent expires as many close substitutes to Ageless would be available

Both

None

Marginal utility of x is independent of y

Marginal utility of y is independent of y

Both

None

The optimal bundle lies in interior

The optimal bundle is at a corner point

Budget line is a tangent to Narendra’s indifference curve at optimal bundle

None

105

120

125

115

8632

8875

7868

9146