| 1 |
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
|
| 2 |
If there are large number of firms in some particular industry, then situation is called |
- A. Perfect competition
- B. Imperfect competition
- C. Monopoly
- D. Monopolistic competition
|
| 3 |
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
|
| 4 |
Law of increasing return is also known as: |
- A. Increasing cost
- B. Constant cost
- C. Diminishing cost
- D. Both (a) and (c)
|
| 5 |
Shut down point appears, when |
- A. AVC=AR
- B. AVC>AR
- C. AVC<AR
- D. AC=AR
|
| 6 |
To increase profit a firm minimizes |
- A. Revenues
- B. Costs
- C. Demand
- D. Supply
|
| 7 |
A monopolist firm usually earns |
- A. Normal profit
- B. Abnormal profit
- C. Minimum loss
- D. Abnormal loss
|
| 8 |
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
|
| 9 |
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
|
| 10 |
Under perfect competition in the long run a firm |
- A. Always earns abnormal profit
- B. Always earns normal profit
- C. Usually earns abnormal profit
- D. Usually faces loss
|
