D:-Contribution is equal to sales minus variable cost
Correct Answer:- Option-C

Question47:-Ildentify TRUE statement from the following

(1) Economies of scale focuses on reducing the per unit cost through large scale
production of single product

(11) Economies of scope focus on the production of variety of products by using the
same resources and thereby reducing the total production cost

(iii) Strategy behind the Economies of Scale is standarisation

(iv) Strategy behind the Economies of Scope is diversification

A:-Statements | and II alone are true
B:-Statements III and IV alone are true
C:-Statements |, II and Ill alone are true
D:-Statements I, Il, Ill and IV alone are true
Correct Answer:- Option-D

Question48:-Ildentify the WRONG statement with regard to the different market
structures.

(i) Monopoly is a situation where there is a single seller but large number of
buyers

(11) Monopsony is a market where there is a single buyer but large number of
sellers

(iii) Oligopsony is a market where there is few buyers exists for a product

(iv) Monopolistic competition exists when a single firm deals in differentiated
products

A:-Statement | alone is wrong
B:-Statement ॥ alone is wrong
C:-Statement III alone is wrong
D:-Statement IV alone is wrong
Correct Answer:- Option-D
Question49:-Which one is NOT a feature of Oligopoly
A:-Free Entry and Exit of firms
B:-Identical products
C:-Possibility of collusion
D:-Interdependence of firms
Correct Answer:- Option-A

Question50:-Which of the following statement is INCORRECT in respect of perfect
competitive market?

(1) Industry equilibrium is determined at a point of intersection of demand and
supply lines

(11) Equilibrium of the firm is decided when MC cuts MR from above

(iii) AR, MR and price are same and therefore represented by a horizontal line
parallel to X axis

(iv) At equilibrium MC line intersects AC line