Answer: Option C. -> zero
Answer: (c)
Marginal utility of a good or service is the gain (or loss) from an increase (or decrease) in the consumption of that good or service.
As the rate of commodity acquisition increases, marginal utility decreases. If commodity consumption continues to rise, marginal utility at some point falls to zero, reaching maximum total utility.
Further increase in consumption of units of commodities causes the marginal utility to become negative; this signifies dissatisfaction.

Answer: Option D. -> Adam Smith
Answer: (d)It was Adam Smith who conceptualized Economics as a science of wealth. Elaborating upon the scope and fundamental conceptualizations of the new science, he then called political economy as "an inquiry into the nature and causes of the wealth of nations.”

Answer: Option D. -> less than price
Answer: (d)
A monopolist's marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit of output.
It is the difference between total revenue - price times quantity - at the new level of output and total revenue at the previous output (one unit less).

Answer: Option D. -> Maximum
Answer: (d)
Marginal utility measures the extra utility (or satisfaction) from consuming an additional unit of a product. Total utility is the total satisfaction from the consumption of the product.
According to the Law of Diminishing Marginal Utility, total utility increases at a diminishing rate. When marginal utility is 0 this means there is no increase in total satisfaction from the consumption of that unit. So the total unit is at maximum.

Answer: Option D. -> Product differentiation
Answer: (d)
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location).
In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. In a monopolistically competitive market, firms can behave like monopolies in the short run, including by using market power to generate profit.
In the long run, however, other firms enter the market and the benefits of differentiation decrease with the competition; the market becomes more like a perfectly competitive one where firms cannot gain economic profit.

Answer: Option A. -> Transfer Payment
Answer: (a)
In economics, factors of production are the inputs to the production process.
There are three basic factors of production:
land,
labour,
capital.
The payment for use and the received income of a landowner is rent. The payment for someone else’s labour and all income received from one’s own labour is wages. The modern theory of rent is that it is the difference between the actual earning of a factor unit over its transfer earnings.
So the Transfer earnings are the minimum payment required to keep a factor of production in its present use. It is also known as opportunity cost.

Answer: Option B. -> a rise in the price of the commodity
Answer: (b)
In economics, the law states that all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.
So basically the quantity demanded and the price of a commodity is inversely related, other things remaining constant.

Answer: Option D. -> creating utility
Answer: (d)
All factors of production like land, labour, capital and entrepreneur are required in combination at a time to produce a commodity.
Production means the creation or an addition of utility. Factors of production (or productive ‘inputs’ or ‘resources’) are any commodities or services used to produce goods and services.

Answer: Option D. -> negative
Answer: (d)
In economics, the cross elasticity of demand or cross-price elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good.
It is measured as the percentage change in demand for the first good that occurs in response to a percentage change in the price of the second good.
A negative cross elasticity denotes two products that are complements, while a positive cross elasticity denotes two substitute products.

Answer: Option D. -> Production and Production factors
Answer: (d)
In economics, a production function relates the physical output of a production process to physical inputs or factors of production.
The primary purpose of the production function is to address allocative efficiency in the use of factor inputs in production and the resulting distribution of income to those factors.