Answer: Option D. -> short term
Answer: (d)Quasi-rent is a term in economics that describes certain types of returns to firms. It differs from pure economic rent in that it is a temporary phenomenon. It can arise from the barriers to entry that potential competitors face in the short run, such as the granting of patents or other legal protections for intellectual property by governments.

Answer: Option D. -> Supply curve
Answer: (d)
The supply curve shows the relationship between the price of a good and the quantity supplied, holding constant the values of all other variables that affect supply.
Each point on the curve shows the quantity that sellers would choose to sell at a specific price.

Answer: Option C. -> creation of utilities
Answer: (c)Production refers to “the creation of utility having value-in-exchange.” The process of production may create six types of utilities: form utility, time utility, place utility, ownership utility, service utility and knowledge utility.

Answer: Option A. -> Risk bearing
Answer: (a)
An entrepreneur performs a series of functions necessary right from the genesis of an idea up to the establishment and effective operation of an enterprise.
The functions of an entrepreneur as a risk bearer are specific in nature. The entrepreneur assumes all possible risks of business that emerges due to the possibility of changes in the tastes of consumers, modern techniques of production and new inventions.
Such risks are not insurable and incalculable. In simple terms, such risks are known as uncertainty concerning a loss.

Answer: Option D. -> Average Revenue is equal to the Marginal Revenue
Answer: (d)
Perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product.
In the short run, perfectly competitive markets are not productively efficient as output will not occur where marginal cost is equal to average cost (MC=AC).
They are allocatively efficient, as output will always occur where marginal cost is equal to marginal revenue (MC=MR).

Answer: Option B. -> unit cost of production
Answer: (b)
In microeconomics, economies of scale are the cost advantages that an enterprise obtains due to expansion.
“Economies of scale” is a long-run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.

Answer: Option B. -> Elasticity = $\text"% change in demand"/\text"% change in price"$
Answer: (b)
Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity, demanded of a good or service to a change in its price.
The formula for the coefficient of price elasticity of demand for a good is: $e_(R) = {{DQ}/Q}/{{dP}/P}$,
where $e_(R)$ = Elasticity of demand;
dQ/ Q= % change in demand and
dP/P= % change in price.

Answer: Option D. -> increases to compensate the firm for the current consumption foregone.
Answer: (d)
Internal rates of return are commonly used to evaluate the desirability of investments or projects. The higher a project's internal rate of return, the more desirable it is to undertake the project.
A firm (or individual), in theory, undertakes all projects or investments available with IRRs that exceed the cost of capital.
As the number of investments increases, its internal rate of return is greater than an established minimum acceptable rate of return or cost of capital.

Answer: Option C. -> the satisfaction which a commodity yields
Answer: (c)
In economics, ‘Utility,’ refers to the total satisfaction received from consuming a good or service.
It is usually applied by economists in such constructs as the indifference curve, which plots the combination of commodities that an individual or a society would accept to maintain a given level of satisfaction.

Answer: Option B. -> Normative economics
Answer: (b)
Normative economics (as opposed to positive economics) is that part of economics that expresses value judgments (normative judgments) about economic fairness or what the economy ought to be like or what goals of public policy ought to be.
It is the study or presentation of “what ought to be” rather than what actually is. Normative economics deals heavily with value judgments and theoretical scenarios.
An example of a normative economic statement would be, “We should cut taxes in half to increase disposable income levels”. By contrast, a positive (or objective) economic observation would be, “Big tax cuts would help many people, but government budget constraints make that option infeasible.”