Say :- True/ False
1) There is unique solution in oligopoly market similar to other markets structure
2) Marginal cost is calculated by dividing total cost to output.
3) A change in total product resulting from a one unit change in the output at particular point of time is called marginal product.
4) Total fixed cost curve is a straight line horizontally
5) Utility is the power of commodity to satisfy human wants.
6) Mutual interdependence is the distinguishing features of Oligopoly market. 7) An isoquant is a curve that shows all possible efficient combinations of inputs that can yield equal level of output
8) Unemployment is a portion of the labor force that is without a job and not searches for work.
9) There is imperfect knowledge in the perfectly competitive market.
10) The Lowest level of output in business cycle is called recession
1) True
2) False
3) True
4) False
5) True
6) True
7) True
8) False
9) True
10) True
1) False - In oligopoly markets, there may not be a unique solution due to the presence of a few large firms, which can impact market outcomes.
2) False - Marginal cost is calculated by dividing the change in total cost by the change in output.
3) True - A change in total product resulting from a one unit change in output is called marginal product.
4) True - The total fixed cost curve is usually a horizontal straight line as fixed costs remain constant regardless of the level of output.
5) True - Utility refers to the power of a commodity to satisfy human wants or needs.
6) True - Mutual interdependence among firms, where their actions and decisions impact each other, is a distinguishing feature of oligopoly markets.
7) True - An isoquant is a curve that represents all possible efficient combinations of inputs that can yield the same level of output.
8) False - Unemployment refers to a portion of the labor force that is without a job but actively searching for work.
9) False - Perfectly competitive markets assume perfect knowledge, where buyers and sellers have complete information about prices and products.
10) False - The lowest level of output in a business cycle is referred to as a trough or depression, not a recession.
1) True/False: To determine if there is a unique solution in an oligopoly market, we need to understand the characteristics of such a market structure. An oligopoly market is characterized by a few large firms dominating the market, and these firms have interdependent decision-making. In some cases, there may be a unique solution, such as when firms reach a Nash equilibrium, where they have no incentive to change their actions. However, in other cases, an oligopoly market may not have a unique solution due to uncertainties, strategic behavior, or collusion among firms. Therefore, the statement can be either true or false depending on the specific circumstances.
2) True: Marginal cost is calculated by dividing the change in total cost by the change in output. It represents the additional cost incurred when producing one additional unit of output. The formula is: Marginal Cost = (Change in Total Cost) / (Change in Output).
3) True: The change in total product resulting from a one unit change in output at a particular point in time is indeed called marginal product. Marginal product measures the increase in output when an additional unit of input is added while holding other inputs constant.
4) False: The total fixed cost curve is a horizontal line, not a straight line. This is because fixed costs remain constant regardless of the level of output. Therefore, the total fixed cost curve is parallel to the x-axis.
5) True: Utility refers to the satisfaction or benefit derived from consuming or using a commodity. It represents the power of a good or service to satisfy human wants or needs.
6) True: Mutual interdependence is indeed a distinguishing feature of an oligopoly market. In an oligopoly, each firm's actions and decisions affect the behavior and profitability of other firms in the market. This interdependence leads to strategic behavior, such as competitive pricing, advertising, or collusion.
7) False: An isoquant is a curve that shows all possible combinations of inputs that can yield a specific level of output, not necessarily equal levels of output. Isoquants are used in production theory to analyze how inputs can be combined to produce different levels of output.
8) False: Unemployment refers to the portion of the labor force that is without a job and actively seeking employment. If individuals are not actively searching for work, they are typically classified as not in the labor force rather than being counted as unemployed.
9) True: In perfectly competitive markets, there is perfect knowledge among buyers and sellers regarding prices and market conditions. Imperfect knowledge refers to situations where buyers or sellers have limited or incomplete information, which can affect market outcomes. Therefore, in perfectly competitive markets, there is no room for imperfect knowledge.
10) False: The lowest level of output in the business cycle is called a trough. A recession refers to a significant decline in economic activity, typically defined as two consecutive quarters of negative GDP growth. During a recession, output levels are generally low, but the lowest point is known as the trough.