| 1 |
If a monopolist wants to increase the sale of its product, it will have to --------- the price of its good |
- A. Decrease
- B. Increase
- C. Keep constant
- D. None of the three
|
| 2 |
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
|
| 3 |
When average product is maximum, marginal product is: |
- A. Positive
- B. Equal to AP
- C. Zero
- D. Negative
|
| 4 |
Till marginal cost curve remains below the marginal revenue curve, from the economic point of view, increase in production for a firm is |
- A. Beneficial
- B. Unbeneficial
- C. May be beneficial or unbeneficial
- D. Neither beneficial nor unbeneficial
|
| 5 |
A monopolist firm usually earns |
- A. Normal profit
- B. Abnormal profit
- C. Minimum loss
- D. Abnormal loss
|
| 6 |
Under monopoly, number of firms is |
- A. Large
- B. Few
- C. One
- D. Two
|
| 7 |
One condition which is not included in perfect competition conditions |
- A. Homogeneity of product
- B. Difference in price
- C. Large number of buyers and sellers
- D. Perfect knowledge of the market
|
| 8 |
If variable costs of a firm are covered partly under perfect competition, then that firm |
- A. Will run with normal profit
- B. Will run with abnormal profit
- C. Will run with minimum loss
- D. Will not continue its business and close down
|
| 9 |
The formula of calculating total revenue is |
- A. P x Q
- B. P x AC
- C. AC x Q
- D. TC / Q
|
| 10 |
Under perfect competition, marginal revenue and average revenue curves |
- A. Moves from left to right upward
- B. Moves from left to right downward
- C. Remain parallel to x-axis
- D. Remain parallel to y-axis
|
