| 1 |
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
|
| 2 |
When average product is maximum, marginal product is: |
- A. Positive
- B. Equal to AP
- C. Zero
- D. Negative
|
| 3 |
Under perfect competition in the long run a firm |
- A. Always earns abnormal profit
- B. Always earns normal profit
- C. Usually earns abnormal profit
- D. Usually faces loss
|
| 4 |
Monopolist firm in the long run |
- A. Always faces loss
- B. Usually faces loss
- C. Usually earns normal profit
- D. Always earns abnormal profit
|
| 5 |
Law of increasing return is more applicable in: |
- A. Trade sector
- B. Industrial sector
- C. Agricultural sector
- D. Power sector
|
| 6 |
The difference between total revenue (TR) and total cost (TC) is called |
- A. Loss
- B. Profit
- C. Profit or loss
- D. Utility
|
| 7 |
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
|
| 8 |
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
|
| 9 |
Industry is in equilibrium under perfect competition in the long run, when every existing firm in the industry |
- A. Is earning abnormal profit
- B. Is earning normal profit
- C. Is facing minimum loss
- D. Is facing abnormal loss
|
| 10 |
Law of constant return is also known as: |
- A. Increasing cost
- B. Constant cost
- C. Diminishing cost
- D. Both (a) and (c)
|
