Question # 1

When a firm's average total cost is equal to price, then it is called as

Choose an answer

Normal profit

Abnormal profit

Normal loss

Abnormal loss

When average cost falls marginal cost is ---------------- average cost

Choose an answer

More than

Less than

Equal to

A and C

When average cost increases, marginal cost is - - - - - - average cost

Choose an answer

Less than

More than

Equal to

None of three

Under perfect competition average revenue is always - - - marginal revenue

Choose an answer

Equal to

Less than

More than

None of three

Fixed costs are those costs of production which

Choose an answer

Rise with quantity of output

Do not change with any amount of production

Decline with rising production

None of these

The amount of money which a firm gets by selling a particular quantity of output, is called

Choose an answer

Average revenue

Marginal revenue

Total revenue

Fixed cost

Marginal cost curve cuts average cost curve when average cost is

Choose an answer

Maximum

Minimum

Increasing

Decreasing

Which is the Demand Curve of a frim

Choose an answer

Average Revenue Curve

Marginal Revenue Curve

Total Revenue Curve

Average cost curve

Dividing total variable costs by the units of output, is attained

Choose an answer

Average fixed cost

Average variable cost

Average cost

Marginal cost

Which is not included in variable cost

Choose an answer

price of raw material

Advertisement expenditures

rent of builiding

wages of labour

Number of firms under monopoly is

Choose an answer

One

Two

Three

Four

Reward of capital is called

Choose an answer

Rent

Wage

Interest

Profit

The kind of market, in which a single firm produces a single commodity which has no close substitute

Choose an answer

Monopoly

Duopoly

Oligopoly

Perfect competition

When average cost curve is rising, then marginal cost curve

Choose an answer

Remains below it

Remains above it

Remains parallel to it

Is vertical

The slope of MR curve in monopoly is

Choose an answer

Vertical

Increasing

Horizontal

Negative

Under monopoly average revenue curve remains ______ the marginal revenue curve

Choose an answer

Below

Above

Parallel to

None of three

Rent of the building, interest of the capital and salaries of the permanent staff etc are called

Choose an answer

Fixed costs

Variable

Marginal cost

Average cost

Dividing total costs by the units of output is attained

Choose an answer

Average fixed cost

Average cost

Average variable cost

Marginal cost

The costs which increase with the increase in output and decrease with the decrease in output, are called

Choose an answer

Variable costs

Fixed costs

Average costs

Marginal cost

Slope of average revenue and marginal revenue cures under monopoly is

Choose an answer

positive

negative

zero

none of three

More Classes

Other Links

Principles of Economics Icom Part 1 English Medium Chapter 6 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer