| 1 |
If the demand for commodity being produced increases, then a firm in the short run ------- its variable factors |
- A. Increases
- B. Decreases
- C. Keeps the same
- D. None of three
|
| 2 |
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
|
| 3 |
A monopolist controls the supply |
- A. Totally
- B. Partially
- C. More
- D. Not at all
|
| 4 |
What can a firm do in the short run |
- A. Firm can increase its plants
- B. Firm can expand its building
- C. New firm can not enter the business
- D. New firm can enter the business
|
| 5 |
A monopolist firm usually earns |
- A. Normal profit
- B. Abnormal profit
- C. Minimum loss
- D. Abnormal loss
|
| 6 |
When total production increases, marginal product is: |
- A. Positive
- B. Negative
- C. Zero
- D. Infinite
|
| 7 |
Industry is in equilibrium under perfect competition in the long run, when every existing firm in the industry |
- A. Is earning abnormal profit
- B. Is earning normal profit
- C. Is facing minimum loss
- D. Is facing abnormal loss
|
| 8 |
When total production is maximum, marginal product is: |
- A. Positive
- B. Negative
- C. Zero
- D. Infinite
|
| 9 |
Under monopoly, marginal revenue is _____ of output |
- A. Decreasing function
- B. Increasing function
- C. Quadratic function
- D. Cubic function
|
| 10 |
Firm earns abnormal profit, when |
- A. AC=AR
- B. AR>AC
- C. AR<AC
- D. AC=MC
|
