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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 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

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