| 1 |
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
|
| 2 |
Choose the correct condition of equilibrium of firm |
- A. MC = MR
- B. MC curve cuts MR curve from below
- C. Both a and b
- D. MC + MR - AR
|
| 3 |
The demand for a factor is called. |
- A. Composite demand
- B. Joint demand
- C. derived demand
- D. No demand
|
| 4 |
Under perfect competition |
- A. AC = AVC
- B. AR = AC
- C. AR = MC
- D. AR= MR
|
| 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 |
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 |
When a competitive firm achieves long run equilibrium then |
- A. P= MC
- B. MR = MC
- C. P = ATC
- D. all of the above
|
| 8 |
If a firm shuts down temporarily, it will incur loss equal to |
- A. AFC
- B. AVC
- C. TFC
- D. TVC
|
| 9 |
The demand for a factor depends on its. |
- A. MRP
- B. ARP
- C. MRP = ARP
- D. MRP < ARP
|
| 10 |
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
|
