| 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 |
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| 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
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| 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
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| 8 |
The shape of marginal revenue product (MRP) curve is |
- A. Inverted U
- B. Steeper
- C. Flatter
- D. Positive
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| 9 |
If a firm shuts down temporarily, it will incur loss equal to |
- A. AFC
- B. AVC
- C. TFC
- D. TVC
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| 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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