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14th Chapter

ICS Part 1 Economics Chapter 14 MCQs Test

First Year Economics Chapter 14 Online MCQ Test for 1st Year Economics Chapter 14 (Maximization of Profit)

This online test contains MCQs about following topics:

Equilibrium of firm . TC - TR approch . MC - Mr approach

First Year Economics Chapter 14 Online MCQ Test for 1st Year Economics Chapter 14 (Maximization of Profit)

Sr. # Questions Answers Choice
1 The necessary condition for equilibrium of firm is
  • A. AVC = AFC
  • B. AR = MR
  • C. MC = MR
  • D. TVC = TFC
2 We establish ______ conditions for equilibrium
  • A. 2
  • B. 3
  • C. 4
  • D. 5
3 A firms reaches its shut down point where:
  • A. AC > AR
  • B. AC = AR
  • C. AC< AR
  • D. AVC = AR
4 The basic goal of a firm is to
  • A. maximize revenues
  • B. maximize employees' welfare
  • C. maximize profit
  • D. maximize output
5 Choose the correct establish condition for equilibrium
  • A. MR = MC
  • B. MC intersects MR curve from below
  • C. MC + MR
  • D. Both a and b
6 A firm decides to shut down production temporarily when
  • A. MC start rising
  • B. AC stat rising
  • C. price = AC
  • D. price falls below AVC
7 If Bali burgers find that their MC of burgers is less than MR they would try to
  • A. expand business
  • B. reduce business
  • C. continue as before
  • D. close business
8 An economic unit, which is independent to take decisions regarding the production and sale of goods are called
  • A. Firm
  • B. Organization
  • C. Both a and b
  • D. None of these
9 In the long run under perfect competition a firm produces at a point where
  • A. LAC is minimum
  • B. SAC is minimum
  • C. both LAC and SAC are minimum
  • D. none is minimum
10 A firm attains sub-normal profit when:
  • A. AR = AC
  • B. AR < AC
  • C. AR > AC
  • D. TR < TC

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