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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 A firm earns economic profit when total profit exceeds
  • A. normal profit
  • B. implicit costs
  • C. explicit costs
  • D. variable costs
2 TR increase at a constant rate under:
  • A. monopoly
  • B. Monopolistic
  • C. Perfect competition
  • D. Oligopoly
3 When a competitive firm faces loss the slop of its MR curve is:
  • A. Negative
  • B. Positive
  • C. Zero
  • D. Unity
4 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
5 Total cost = Total variable cost in the.
  • A. Marked period
  • B. Short run
  • C. Long run
  • D. None of the three
6 We establish ______ conditions for equilibrium
  • A. 2
  • B. 3
  • C. 4
  • D. 5
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 In the long-run a competitive firms attains only:<div><br></div>
  • A. Normal profit
  • B. Super Normal profit
  • C. Sub-Normal profit
  • D. Marginal cost
9 profit is a maximum when
  • A. TC and TR curves are parallel
  • B. MC and MR curves are parallel
  • C. AC and AR curves are parallel
  • D. TFC and TVC are parallel
10 Economic profit is
  • A. part of total cost
  • B. total revenue minus total cost
  • C. total revenue minus variable cost
  • D. total variable cost minus total fixed cost

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