Question # 1

Laws of returns are also known as:

Choose an answer

Laws of substitution

Laws of consumption

Laws of cost

All of three

Monopolist firm in the long run

Choose an answer

Always faces loss

Usually faces loss

Usually earns normal profit

Always earns abnormal profit

A monopolist controls the supply

Choose an answer

Totally

Partially

More

Not at all

Which law is applicable when human and natural forces are balance ?

Choose an answer

Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

Firms equilibrium is at that point where

Choose an answer

MC=AR

MC=MR

MC=AVC

MC=AC

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

Choose an answer

Increases

Decreases

Keeps the same

None of three

Tendency of average revenue curve under monopoly is alwaus

Choose an answer

Falls down

Parallel to x-axis

Rises up

Parallel to y-axis

When total production decreases, marginal product is:

Choose an answer

Positive

Negative

Zero

Infinite

Monopoly is opposite to

Choose an answer

Perfect competition

Imperfect competition

Perfect competition and imperfect competition both

Oligopoly

If the equation is this, MC=MR=AR(P)<AC then the firm

Choose an answer

Earns normal profit

Earns abnormal profit

Bears loss

Bears abnormal loss

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

Choose an answer

Loss

Profit

Profit or loss

Utility

When a firm earns abnormal profit in the short run, then its

Choose an answer

MC=MR=AR=AC all are equal

MC=MR=AR while AC is less

MC=MR=AR while AC is more

MC=MR=AR while AV is sometimes equal to them and sometimes less than tham

Under perfect competition, marginal revenue and average revenue curves

Choose an answer

Moves from left to right upward

Moves from left to right downward

Remain parallel to x-axis

Remain parallel to y-axis

When average product is maximum, marginal product is:

Choose an answer

Positive

Equal to AP

Zero

Negative

Firm earns maximum profit at the point where

Choose an answer

Difference between total costs and total revenue is highest and the total revenue curve is above

Total costs and total revenue curves intersect each other

Total costs curve is above the total revenue curve

Difference between total costs and total revenue is minimum

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

Choose an answer

Abnormal profit

Normal profit

Normal loss

Abnormal loss

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

Choose an answer

Under monopoly

Under oligopoly

Under perfect competition

Under pure competition

Law of increasing return is also known as:

Choose an answer

Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

Law of decreasing return is also known as:

Choose an answer

Increasing cost

Constant cost

Diminishing cost

Both (a) and (c)

If the equation is this, MC=MR-AR(P)=AC, then the firm

Choose an answer

Earns normal profit

Earns abnormal profit

Bears minimum loss

Bears abnormal loss

More Classes

Other Links

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

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer