Question 51 A reduction in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to decrease A True B False
Question 51 A reduction in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the commodity to decrease A True B False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 51
A reduction in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the
commodity to decrease
A) True
False
Question 52
We cannot have Income elasticity of demand and price elasticity of demand both positive.
A
True
Tew/attempt/ 919720_1?courseld= 8309 1
Question 53
For a downward sloping market demand curve we can say that its elasticity falls as quantity rises
True
B) False
Question 54
A monopolist can choose both quantities and prices whereas a perfectly competitive firm can choose only quantities
A) True
B False
Question 55
A perfectly competitive firm faces a horizontal demand curve in the g-p space
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F328146a8-9bdb-4370-ae68-147512e2e1bc%2F4d6f469f-8cc0-4519-b0d4-2ff26d8240d4%2F05w940j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 51
A reduction in the price of a commodity whose demand curve is a rectangular hyperbola causes total expenditure on the
commodity to decrease
A) True
False
Question 52
We cannot have Income elasticity of demand and price elasticity of demand both positive.
A
True
Tew/attempt/ 919720_1?courseld= 8309 1
Question 53
For a downward sloping market demand curve we can say that its elasticity falls as quantity rises
True
B) False
Question 54
A monopolist can choose both quantities and prices whereas a perfectly competitive firm can choose only quantities
A) True
B False
Question 55
A perfectly competitive firm faces a horizontal demand curve in the g-p space
True
False
![Question 47
If the production function is decreasing returns to scale then the average cost function is declining with output
A) True
False
Question 48
A perfectly competitive firm exists the market in the short run when prices fall below average variable cost
True
False
Question 49
A very large fixed cost may make the average cost to be falling throughout the output range
A) True
False
aLEmpy919720_1?courseld= 8309 1
Question 50
Consider the linear demand curve Q=10-2p. If p=2 then consumer surplus is 6
A) True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F328146a8-9bdb-4370-ae68-147512e2e1bc%2F4d6f469f-8cc0-4519-b0d4-2ff26d8240d4%2F5vkmk2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 47
If the production function is decreasing returns to scale then the average cost function is declining with output
A) True
False
Question 48
A perfectly competitive firm exists the market in the short run when prices fall below average variable cost
True
False
Question 49
A very large fixed cost may make the average cost to be falling throughout the output range
A) True
False
aLEmpy919720_1?courseld= 8309 1
Question 50
Consider the linear demand curve Q=10-2p. If p=2 then consumer surplus is 6
A) True
False
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