| 1 |
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
|
| 2 |
Under monopoly, marginal revenue is _____ of output |
- A. Decreasing function
- B. Increasing function
- C. Quadratic function
- D. Cubic function
|
| 3 |
A monopolist firm usually earns |
- A. Normal profit
- B. Abnormal profit
- C. Minimum loss
- D. Abnormal loss
|
| 4 |
In monopoly, when total revenue of a firm is maximum, then its marginal revenue is |
- A. Maximum
- B. Minimum
- C. Zero
- D. Negative
|
| 5 |
Firm earns abnormal profit, when |
- A. AC=AR
- B. AR>AC
- C. AR<AC
- D. AC=MC
|
| 6 |
Law of increasing return is more applicable in: |
- A. Trade sector
- B. Industrial sector
- C. Agricultural sector
- D. Power sector
|
| 7 |
When average product is maximum, marginal product is: |
- A. Positive
- B. Equal to AP
- C. Zero
- D. Negative
|
| 8 |
Monopolist firm in the long run |
- A. Always faces loss
- B. Usually faces loss
- C. Usually earns normal profit
- D. Always earns abnormal profit
|
| 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 |
If there are large number of firms in some particular industry, then situation is called |
- A. Perfect competition
- B. Imperfect competition
- C. Monopoly
- D. Monopolistic competition
|
