| 1 |
If the equation is this, MC=MR=AR(P)<AC then the firm |
- A. Earns normal profit
- B. Earns abnormal profit
- C. Bears loss
- D. Bears abnormal loss
|
| 2 |
Law of decreasing return is also known as: |
- A. Increasing cost
- B. Constant cost
- C. Diminishing cost
- D. Both (a) and (c)
|
| 3 |
If the most part of total supply of commodity is produced by one firm, it is called |
- A. Oligopoly
- B. Monopoly
- C. Perfect competition
- D. Monopolistic competition
|
| 4 |
Tendency of average revenue curve under monopoly is alwaus |
- A. Falls down
- B. Parallel to x-axis
- C. Rises up
- D. Parallel to y-axis
|
| 5 |
Law of diminishing return is more applicable in: |
- A. Trade sector
- B. Industrial sector
- C. Agricultural sector
- D. Education sector
|
| 6 |
According to neo classical approach, output is the function of: |
- A. Labour
- B. Capital
- C. Organization
- D. Both (a) and (b)
|
| 7 |
Firm earns maximum profit at the point where |
- A. Difference between total costs and total revenue is highest and the total revenue curve is above
- B. Total costs and total revenue curves intersect each other
- C. Total costs curve is above the total revenue curve
- D. Difference between total costs and total revenue is minimum
|
| 8 |
If the demand for commodity being produced increases, then a firm in the short run ------- its variable factors |
- A. Increases
- B. Decreases
- C. Keeps the same
- D. None of three
|
| 9 |
To increase profit a firm minimizes |
- A. Revenues
- B. Costs
- C. Demand
- D. Supply
|
| 10 |
Usually elasticity of demand in equilibrium situation under monopoly is |
- A. Equal than unity
- B. Less than unity
- C. more than unity
- D. Zero
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