Question # 1

Tendency of average revenue curve under monopoly is alwaus

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Falls down

Parallel to x-axis

Rises up

Parallel to y-axis

According to neo classical approach, output is the function of:

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Labour

Capital

Organization

Both (a) and (b)

If the demand for commodity being produced increases, then a firm in the short run ------- its variable factors

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Increases

Decreases

Keeps the same

None of three

Speed of increase in total revenue remains equal with the increase in output

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Under monopoly

Under oligopoly

Under perfect competition

Under pure competition

A firm earns normal profit

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When price of the commodity is equal to average cost

When price of the commodity is more than average cost

When price of the commodity is less than average cost

When total revenue is more than total costs

A monopolist controls the supply

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Totally

Partially

More

Not at all

Law of increasing return is also known as:

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Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

Law of diminishing return is more applicable in:

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Trade sector

Industrial sector

Agricultural sector

Education sector

When average product is maximum, marginal product is:

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Positive

Equal to AP

Zero

Negative

Under monopoly, marginal revenue is _____ of output

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Decreasing function

Increasing function

Quadratic function

Cubic function

If a monopolist wants to increase the sale of its product, it will have to --------- the price of its good

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Decrease

Increase

Keep constant

None of the three

The difference between total revenue (TR) and total cost (TC) is called

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Loss

Profit

Profit or loss

Utility

When total revenue and total cost of a firm are equal, the firm earns

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Abnormal profit

Normal profit

Normal loss

Abnormal loss

Under perfect competition, marginal revenue and average revenue curves

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Moves from left to right upward

Moves from left to right downward

Remain parallel to x-axis

Remain parallel to y-axis

When total production increases, marginal product is:

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Positive

Negative

Zero

Infinite

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Principles of Economics Icom Part 1 English Medium Chapter 7 Online Test MCQs With Answers

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