| 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
|
