| 1 |
Speed of increase in total revenue remains equal with the increase in output |
- A. Under monopoly
- B. Under oligopoly
- C. Under perfect competition
- D. Under pure competition
|
| 2 |
Firm earns maximum profit at the point where |
- A. Difference between total costs and total revenue is highest and the total revenue curve is above
- B. Total costs and total revenue curves intersect each other
- C. Total costs curve is above the total revenue curve
- D. Difference between total costs and total revenue is minimum
|
| 3 |
If variable costs of a firm are covered partly under perfect competition, then that firm |
- A. Will run with normal profit
- B. Will run with abnormal profit
- C. Will run with minimum loss
- D. Will not continue its business and close down
|
| 4 |
A firm earns normal profit |
- A. When price of the commodity is equal to average cost
- B. When price of the commodity is more than average cost
- C. When price of the commodity is less than average cost
- D. When total revenue is more than total costs
|
| 5 |
In monopoly, when total revenue of a firm is maximum, then its marginal revenue is |
- A. Maximum
- B. Minimum
- C. Zero
- D. Negative
|
| 6 |
Shut down point appears, when |
- A. AVC=AR
- B. AVC>AR
- C. AVC<AR
- D. AC=AR
|
| 7 |
Under perfect competition, marginal revenue and average revenue curves |
- A. Moves from left to right upward
- B. Moves from left to right downward
- C. Remain parallel to x-axis
- D. Remain parallel to y-axis
|
| 8 |
A monopolistic firm has control of |
- A. Whole market supply by one firm
- B. Whole market supply by two firms
- C. Whole market supply by a few firms
- D. None of these
|
| 9 |
Usually elasticity of demand in equilibrium situation under monopoly is |
- A. Equal than unity
- B. Less than unity
- C. more than unity
- D. Zero
|
| 10 |
A firm is in equilibrium when its |
- A. Marginal revenue is equal to marginal cost
- B. Marginal revenue is more than marginal cost
- C. Marginal revenue is less than marginal cost
- D. Marginal revenue is equal to average cost
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