| 1 |
Under monopoly the price is always equal to: |
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| 2 |
A firm attains sub-normal profit under perfect competition when its: |
- A. AR = P (Price)
- B. AR < P
- C. AC = P
- D. AC < P
|
| 3 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
|
| 4 |
The necessary condition for equilibrium position of a firm is |
- A. MC > MR
- B. MC > price
- C. MC = MR
- D. MC = AC
|
| 5 |
A monopoly firm is in equilibrium when |
- A. MC intersects AC
- B. MC intersect MR
- C. AC intersects AR
- D. TC intersects TR
|
| 6 |
Normal profit is attained where: |
- A. TR = TC
- B. TR >TC
- C. AR > MR
- D. AR < MR
|
| 7 |
A firm attains equilibrium under monopoly where: |
- A. AR = MR
- B. AC = MC
- C. MR = MC
- D. AR = AC
|
| 8 |
When a competitive firm faces loss the slop of its MR curve is: |
- A. Negative
- B. Positive
- C. Zero
- D. Unity
|
| 9 |
Normal profit is |
- A. part of total cost
- B. part of economic profit
- C. part of fixed cost
- D. total revenue minus total cost
|
| 10 |
Profit is maximum when |
- A. distance between TR and TC is maximum
- B. distance between AR and AC is maximum
- C. distance between MR and MC is maximum
- D. distance between MR and AR is maximum
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