Question # 1

The necessary condition for equilibrium position of a firm is

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MR > MC

MC > price

MC = MR

MC = AC

The demand for a factor is called.

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Composite demand

Joint demand

derived demand

No demand

With an increase in wage rate supply of labour.

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Decrease

Increase

Remains constant

None of the three

A monopoly generally

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allocates resources in a socially optimal way

encourages greater income equality

encourages greater efficiency

produces less quantity than the quantity which minimies average cost

In monopoly and perfect competition the cost curves are

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similar

different

opposite

falling in competition rising in monopoly

Choose the correct condition of equilibrium of firm

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MC = MR

MC curve cuts MR curve from below

Both a and b

MC + MR - AR

The correlation between average wage (AW) and marginal wage (MW) under perfect competition is .

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AW = MW

AW > MW

AW < MW

None of the three

Normal profit is called normal because

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it is neither very high nor very low

it is minimum acceptable to the producer

it is minimum which buyer wants to pay

it is maximum allowed by govt.

Marginal revenue recommended by symbol

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MR

MC

AR

None of these

Under perfect competition

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AC = AVC

AR = AC

AR = MC

AR= MR

Marginal revenue of a monopolist is

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equal to price

greater than price

less than price

increases with output

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Economics Ics Part 1 English Medium Chapter 15 Online Test MCQs With Answers

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