Micro Economics-Online Practice Exam 7

# Question

1. In case of Bains’ limit pricing, equlibrium will be at point where

MR is negative

MR is maximum

MR is minimum

None of these

# Question

2.   Demand curve becomes the MR curve in which degree of price discrimination ?

1

3

2

None of these

# Question

3. ‘Take it or leave it’ price discrimination is of what degree ?

2

3

1

None of these

# Question

4. Who was the author of the book “The Economics of Welfare”?

A.C Pigou

Pareto

J.M Keynes

Alfred Marshall

# Question

5. On the basis of the data given below assuming that P = 100 – 2X., company resorts to price discrimination.

P1 = 80 – 2.5 X1 and

P2 = 180 – 10X2

Cost function is C = 150 + 40X.

What is the profit in case it resorts to price discrimination at the maximisation level ?

300

400

500

600

# Question

6. On the basis if the data given below assuming that P = 100 – 2 x., company resorts to price discrimination.

P1 = 80 – 2.5 X1 and

P2 = 180 – 10X2

Cost function is C = 150 + 40X.

What is its MC ?

30

35

40

45

# Question

7.  On the basis if the data given below assuming that P = 100 – 2x., company resorts to price discrimination.

P1 = 80 – 2.5 X1 and

P2 = 180 – 10X2

Cost function is C = 150 + 40X.

At what price will the company sell in market ?

40

45

50

60

# Question

8.  On the basis if the data given below assuming that P = 100 – 2x., company resorts to price discrimination.

P1 = 80 – 2.5X1 and

P2 = 180 – 10X2

Cost function is C = 150 + 40X.

At what price will the company sell market ?

75

100

110

120

# Question

9.  On the basis if the data given below assuming that P = 100 – 2x., company resorts to price discrimination.

P1 = 80 – 2.5X1 and

P2 = 180 – 10X2

Cost function is C = 150 + 40X.

What is its elasticity in market-1 at price where profit is maximum ?

0

1

2

3

# Question

10. On the basis if the data given below assuming that P = 100 – 2x., company resorts to price discrimination.

P1 = 80 – 2.5X1 and

P2 = 180 – 10X2

Cost function is C = 150 + 40X.

What is its elasticity in market-2 at price where profit is maximum ?

1.25

1.57

1.62

1.72

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