| 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 |
|
| 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
|
