11
The cross-elasticity of demand between complementary goods is?
12
Resources are efficiently allocated when production takes place at that output where price equals?
13
Comparison of the price and output decisions of a perfectly competitive firm with those of a monopolist shows that the?
A
monopolist charges a lower price than the perfect competitior
B
perfect competitior charges a lower price and produces a large output than the monopolist
C
perfect competitior produces a smaller output than the monopolist
D
monopolist charges a lower price and produces a larger output than the perfect competitor
14
In a perfectly competitive market, the firm is in long-run equilibrium at the output where?
A
marginal cost is minimum
D
marginal cost revenue is maximum
15
The ordinary partner in a partnership?
A
takes no active in the management of the business
B
has limited liability in case of business failure
C
has unlimited liability in case of business failure
D
cannot be sued personally on matters relating to the business
16
A possible factor which limits the extent of growth of a firm is the?
B
bureaucratic delays in decision-making
D
unwillingness to share ownership and control
17
One of the most outstanding disadvantages of co-operative societies as business organization is that?
A
true spirit of co-operation is marred by delegated authority
B
members show much interest
D
membership interest is centred on sharing of essential commodities
18
A disadvantage of a joint-stock company is?
D
loss of controlling interest
19
A characteristic of a debenture is that?
A
its yeild is based on profits
B
its yeild is a fixed rate of interest
C
it has no redemption date
D
there is a voting right when interest is paid
20
Industries tend to be located closer to market centers than to the sources of major raw materials if the?
A
products are relatively cheap to transport to market centers
B
products are relatively more expensive to transport than the major raw materials
C
raw marterials are bulky
D
raw marterials can also be imported
