| 1 |
Law of increasing return is also known as: |
- A. Increasing cost
- B. Constant cost
- C. Diminishing cost
- D. Both (a) and (c)
|
| 2 |
Under monopoly, number of firms is |
- A. Large
- B. Few
- C. One
- D. Two
|
| 3 |
If the equation is this, MC=MR-AR(P)=AC, then the firm |
- A. Earns normal profit
- B. Earns abnormal profit
- C. Bears minimum loss
- D. Bears abnormal loss
|
| 4 |
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
|
| 5 |
Laws of returns are also known as: |
- A. Laws of substitution
- B. Laws of consumption
- C. Laws of cost
- D. All of three
|
| 6 |
When total production is maximum, marginal product is: |
- A. Positive
- B. Negative
- C. Zero
- D. Infinite
|
| 7 |
What can a firm do in the short run |
- A. Firm can increase its plants
- B. Firm can expand its building
- C. New firm can not enter the business
- D. New firm can enter the business
|
| 8 |
When total production increases, marginal product is: |
- A. Positive
- B. Negative
- C. Zero
- D. Infinite
|
| 9 |
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
|
| 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
|
