Question # 1

Normally MR curve intersects MC curve at points

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1

2

3

4

A firm attains sub-normal profit under perfect competition when its:

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AR = P (Price)

AR < P

AC = P

AC < P

profit is a maximum when

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TC and TR curves are parallel

MC and MR curves are parallel

AC and AR curves are parallel

TFC and TVC are parallel

Profit = ?

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TR - TC

TR - MC

TC - MC

TR + TC

In the long-run a firm attains under monopoly;

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Normal profit

Super normal profit

Sub-normal profit

Any on of the above

A firm will be in equilibrium where.

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Its total profit is high

Its cot is minimum

It produces at a level of output which its profit is minimum or loss in minimum

None of the three

In the long-run a competitive firms attains only:

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Normal profit

Super Normal profit

Sub-Normal profit

Marginal cost

The necessary condition for equilibrium of firm is

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AVC = AFC

AR = MR

MC = MR

TVC = TFC

In the long run under perfect competition a firm produces at a point where

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LAC is minimum

SAC is minimum

both LAC and SAC are minimum

none is minimum

TR increase at a constant rate under:

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monopoly

Monopolistic

Perfect competition

Oligopoly

The basic goal of a firm is to

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maximize revenues

maximize employees' welfare

maximize profit

maximize output

Total cost = Total variable cost in the.

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Marked period

Short run

Long run

None of the three

A monopoly firm is in equilibrium when

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MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

A firms reaches its shut down point where:

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AC > AR

AC = AR

AC< AR

AVC = AR

When TR of a competitive firm is equal to its TC, the firm attains.

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Normal profit

Super normal profit

Sub-normal profit

Shutdown point

When a competitive firm faces loss the slop of its MR curve is:

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Negative

Positive

Zero

Unity

A firm earns economic profit when total profit exceeds

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normal profit

implicit costs

explicit costs

variable costs

A firm attains equilibrium under monopoly where:

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AR = MR

AC = MC

MR = MC

AR = AC

Normal profit is

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part of total cost

part of economic profit

part of fixed cost

total revenue minus total cost

Profit is maximum when

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distance between TR and TC is maximum

distance between AR and AC is maximum

distance between MR and MC is maximum

distance between MR and AR is maximum

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