| 1 |
The shape of marginal revenue product (MRP) curve is |
- A. Inverted U
- B. Steeper
- C. Flatter
- D. Positive
|
| 2 |
Marginal revenue recommended by symbol |
- A. MR
- B. MC
- C. AR
- D. None of these
|
| 3 |
A monopoly generally |
- A. allocates resources in a socially optimal way
- B. encourages greater income equality
- C. encourages greater efficiency
- D. produces less quantity than the quantity which minimies average cost
|
| 4 |
If a firm shuts down temporarily, it will incur loss equal to |
- A. AFC
- B. AVC
- C. TFC
- D. TVC
|
| 5 |
Marginal revenue is always less than price at all level of output in |
- A. perfect competition
- B. monopoly
- C. both a and b
- D. none of the above
|
| 6 |
A market competition from in which there are very large number of firms producing a homogeneous commodity are called |
- A. Perfect competition
- B. Equilibrium of firm
- C. Under perfect competition
- D. None of these
|
| 7 |
The necessary condition for equilibrium position of a firm is |
- A. MR > MC
- B. MC > price
- C. MC = MR
- D. MC = AC
|
| 8 |
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
|
| 9 |
The most efficient scale of production of a firm is where |
- A. LAC is minimum
- B. SAC is minimum
- C. LMC is minimum
- D. SMC is minimum
|
| 10 |
Total profit = ? |
- A. Per unit profit x output
- B. Per unit profit x input
- C. Per unit profit + output
- D. per unit profit - input
|
