| 1 |
When a firm earns abnormal profit in the short run, then its |
- A. MC=MR=AR=AC all are equal
- B. MC=MR=AR while AC is less
- C. MC=MR=AR while AC is more
- D. MC=MR=AR while AV is sometimes equal to them and sometimes less than tham
|
| 2 |
A monopolistic firm has control of |
- A. Whole market supply by one firm
- B. Whole market supply by two firms
- C. Whole market supply by a few firms
- D. None of these
|
| 3 |
Laws of returns are also known as: |
- A. Laws of substitution
- B. Laws of consumption
- C. Laws of cost
- D. All of three
|
| 4 |
Usually elasticity of demand in equilibrium situation under monopoly is |
- A. Equal than unity
- B. Less than unity
- C. more than unity
- D. Zero
|
| 5 |
When total production is maximum, marginal product is: |
- A. Positive
- B. Negative
- C. Zero
- D. Infinite
|
| 6 |
A monopolist firm usually earns |
- A. Normal profit
- B. Abnormal profit
- C. Minimum loss
- D. Abnormal loss
|
| 7 |
In monopoly, when total revenue of a firm is maximum, then its marginal revenue is |
- A. Maximum
- B. Minimum
- C. Zero
- D. Negative
|
| 8 |
A firm earns normal profit |
- A. When price of the commodity is equal to average cost
- B. When price of the commodity is more than average cost
- C. When price of the commodity is less than average cost
- D. When total revenue is more than total costs
|
| 9 |
When total production increases, marginal product is: |
- A. Positive
- B. Negative
- C. Zero
- D. Infinite
|
| 10 |
When total revenue and total cost of a firm are equal, the firm earns |
- A. Abnormal profit
- B. Normal profit
- C. Normal loss
- D. Abnormal loss
|
