Q. The opportunity cost of a given activity is
✅ Correct Answer: (A)
the value of next best activity
Managerial Economics 1 MCQs and Notes
Q. The law of diminishing returns applies more to
✅ Correct Answer: (A)
agriculture
Q. Product differentiation is the important feature of
✅ Correct Answer: (C)
monopolistic competition
Q. The condition for the long run equilibrium of a perfectly competitive firm
✅ Correct Answer: (A)
Price=MC=AC
Q. The distinction between variable cost and fixed cost is relevant only in
✅ Correct Answer: (B)
short period
Q. Average revenue is the revenue per
✅ Correct Answer: (A)
unit commodity sold
Q. Under oligopoly a single seller cannot influence significantly
✅ Correct Answer: (D)
all the above
Q. The short run production function is called;
✅ Correct Answer: (B)
law of variable proportion
Q. In the oligopoly market there are
✅ Correct Answer: (B)
a few firms