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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 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.
2 The necessary condition for equilibrium position of a firm is
  • A. MR > MC
  • B. MC > price
  • C. MC = MR
  • D. MC = AC
3 "The reward for a factor is determined by the marginal revenue product of the factor" . it was said by:
  • A. J.M. Keynes
  • B. Taussing
  • C. Hansen
  • D. Carver
4 How many condition of equilibrium of firm
  • A. 2
  • B. 3
  • C. 4
  • D. 5
5 The demand for a factor depends on its.
  • A. MRP
  • B. ARP
  • C. MRP = ARP
  • D. MRP < ARP
6 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
7 One of the following is not assumption of the marginal productivity theory.
  • A. All factors of production are present substitutes of each other.
  • B. Law of increasing return applies in the production process.
  • C. There is perfect mobility of factor of production
  • D. Units of each factors of production are identical
8 The shape of marginal revenue product (MRP) curve is
  • A. Inverted U
  • B. Steeper
  • C. Flatter
  • D. Positive
9 If a firm shuts down temporarily, it will incur loss equal to
  • A. AFC
  • B. AVC
  • C. TFC
  • D. TVC
10 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

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