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15th Chapter

ICS Part 1 Economics Chapter 15 MCQs Test

First Year Economics Chapter 15 Online MCQ Test for 1st Year Economics Chapter 15 (Equilibrium of Firm)

This online test contains MCQs about following topics:

Equilibrium in short run . Equilibrium in long run . Equilibrium of industry . Normal profit . Short run and long run equilibrium under monopoly . Evils of monopoly perfect competition Vs Monopoly

First Year Economics Chapter 15 Online MCQ Test for 1st Year Economics Chapter 15 (Equilibrium of Firm)

Sr. # Questions Answers Choice
1 When a competitive firm achieves long run equilibrium then
  • A. P= MC
  • B. MR = MC
  • C. P = ATC
  • D. all of the above
2 A firm should shut down in the short run if it is not covering its
  • A. variable cost
  • B. fixed cost
  • C. total cost
  • D. explicit cost
3 Normal profit is called normal because
  • A. it is neither very high nor very low
  • B. it is minimum acceptable to the producer
  • C. it is minimum which buyer wants to pay
  • D. it is maximum allowed by govt.
4 The necessary condition for equilibrium position of a firm is
  • A. MR > MC
  • B. MC > price
  • C. MC = MR
  • D. MC = AC
5 MRP curve of a factor represents the.
  • A. Supply curve of the factor
  • B. Demand curve of the factor
  • C. Either demand or supply curve of the factor
  • D. None of the three
6 Profit is maximum when
  • A. TC and TR curves are parallel
  • B. MC and MR curves are parallel
  • C. TC and TR curves cross each other
  • D. AC and AR curves cross each other
7 The demand for a factor depends on its.
  • A. MRP
  • B. ARP
  • C. MRP = ARP
  • D. MRP < ARP
8 :It is not possible to separate marginal revenue product of each factor of production:. It was said by:
  • A. Carver
  • B. Hobson
  • C. Hansen
  • D. Hicks
9 The position of the firm when it is earning maximum of profit and Profit = Total Revenue - Total cost are called
  • A. Perfect competition
  • B. Under perfect competition
  • C. Equilibrium of firm
  • D. None of these
10 In short period how many possibilities in which a firm may find itself
  • A. four
  • B. five
  • C. six
  • D. seven

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