| 1 |
A firm attains equilibrium under monopoly where: |
- A. AR = MR
- B. AC = MC
- C. MR = MC
- D. AR = AC
|
| 2 |
When a competitive firm faces loss the slop of its MR curve is: |
- A. Negative
- B. Positive
- C. Zero
- D. Unity
|
| 3 |
A firms reaches its shut down point where: |
- A. AC > AR
- B. AC = AR
- C. AC< AR
- D. AVC = AR
|
| 4 |
The necessary condition for equilibrium position of a firm is |
- A. MC > MR
- B. MC > price
- C. MC = MR
- D. MC = AC
|
| 5 |
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
|
| 6 |
Normal profit is attained where: |
- A. TR = TC
- B. TR >TC
- C. AR > MR
- D. AR < MR
|
| 7 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
|
| 8 |
A competitive firm is in equilibrium in the long-run where: |
- A. ME = AR = LMC = P
- B. MR = AR = LMC = LAC
- C. MR < AR = LMC <LAC
- D. None of the three
|
| 9 |
A firm attains sub-normal profit when: |
- A. AR = AC
- B. AR < AC
- C. AR > AC
- D. TR < TC
|
| 10 |
A monopoly firm is in equilibrium when |
- A. MC intersects AC
- B. MC intersect MR
- C. AC intersects AR
- D. TC intersects TR
|
