| 1 |
TR increase at a constant rate under: |
- A. monopoly
- B. Monopolistic
- C. Perfect competition
- D. Oligopoly
|
| 2 |
The necessary condition for equilibrium position of a firm is |
- A. MC > MR
- B. MC > price
- C. MC = MR
- D. MC = AC
|
| 3 |
A firm attains sub-normal profit when: |
- A. AR = AC
- B. AR < AC
- C. AR > AC
- D. TR < TC
|
| 4 |
When a competitive firm faces loss the slop of its MR curve is: |
- A. Negative
- B. Positive
- C. Zero
- D. Unity
|
| 5 |
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
|
| 6 |
Normal profit is attained where: |
- A. TR = TC
- B. TR >TC
- C. AR > MR
- D. AR < MR
|
| 7 |
A firm will be in equilibrium where. |
- A. Its total profit is high
- B. Its cot is minimum
- C. It produces at a level of output which its profit is minimum or loss in minimum
- D. None of the three
|
| 8 |
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
|
| 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
|
