| 1 |
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
|
| 2 |
A monopolist firm usually earns |
- A. Normal profit
- B. Abnormal profit
- C. Minimum loss
- D. Abnormal loss
|
| 3 |
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
|
| 4 |
Law of diminishing return is more applicable in: |
- A. Trade sector
- B. Industrial sector
- C. Agricultural sector
- D. Education sector
|
| 5 |
When average product is maximum, marginal product is: |
- A. Positive
- B. Equal to AP
- C. Zero
- D. Negative
|
| 6 |
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
|
| 7 |
Firm earns abnormal profit, when |
- A. AC=AR
- B. AR>AC
- C. AR<AC
- D. AC=MC
|
| 8 |
Shut down point appears, when |
- A. AVC=AR
- B. AVC>AR
- C. AVC<AR
- D. AC=AR
|
| 9 |
Speed of increase in total revenue remains equal with the increase in output |
- A. Under monopoly
- B. Under oligopoly
- C. Under perfect competition
- D. Under pure competition
|
| 10 |
Law of decreasing return is also known as: |
- A. Increasing cost
- B. Constant cost
- C. Diminishing cost
- D. Both (a) and (c)
|
