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7th Chapter

### 11th Principle of Economics Chapter 7 Test

Here you can prepare 11th Principle of Economics English Medium Chapter 7 Price and Output Determination Test. Click the button for 100% free full practice test.

## First Year Principles of Economics Chapter 7 Online MCQ Test for 1st Year Principles of Economics Chapter 7 (Price and Output Determination)

This online test contains MCQs about following topics:

. Normal profit . Super normal profit . Determination of firm's output under perfect competiton . Equilibrium of the firm under perfect competition in the short run . Equilibrium of the firm undre perfect competition in the long run . Equilibrium of the industry inder perfect competition in the long run . Price and output determination under monopoly

ICOM Part 1 Economics Ch 7 Test

### First Year Principles of Economics Chapter 7 Online MCQ Test for 1st Year Principles of Economics Chapter 7 (Price and Output Determination)

1 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
2 According to neo classical approach, output is the function of:
• A. Labour
• B. Capital
• C. Organization
• D. Both (a) and (b)
3 When total revenue and total cost of a firm are equal, the firm earns
• A. Abnormal profit
• B. Normal profit
• C. Normal loss
• D. Abnormal loss
4 Tendency of average revenue curve under monopoly is alwaus
• A. Falls down
• B. Parallel to x-axis
• C. Rises up
• D. Parallel to y-axis
5 Usually elasticity of demand in equilibrium situation under monopoly is
• A. Equal than unity
• B. Less than unity
• C. more than unity
• D. Zero
6 If a monopolist wants to increase the sale of its product, it will have to --------- the price of its good
• A. Decrease
• B. Increase
• C. Keep constant
• D. None of the three
7 When a firm earns abnormal profit in the short run, then its
• A. MC=MR=AR=AC all are equal
• B. MC=MR=AR while AC is less
• C. MC=MR=AR while AC is more
• D. MC=MR=AR while AV is sometimes equal to them and sometimes less than tham
8 One condition which is not included in perfect competition conditions
• A. Homogeneity of product
• B. Difference in price
• C. Large number of buyers and sellers
• D. Perfect knowledge of the market
9 The formula of calculating total revenue is
• A. P x Q
• B. P x AC
• C. AC x Q
• D. TC / Q
10 Shut down point appears, when
• A. AVC=AR
• B. AVC&gt;AR
• C. AVC&lt;AR
• D. AC=AR

### Top Scorers of Principles of Economics Icom Part 1 English Medium Chapter 7 Online Test

B

#### Bilal Zafar

Lahore07 - Jun - 2024

14/15
04 Mins 38 Sec
S

#### Sania Butt

Lahore03 - Jun - 2024

12/15
06 Mins 03 Sec

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