| 1 |
Cost of a firm on the optimum combination of factors of production is |
- A. Minimum
- B. Maximum
- C. Reasonable
- D. Positive
|
| 2 |
Marginal revenue product curve is called |
- A. Demand curve of firm
- B. Supply curve of firm
- C. Demand curve of industry
- D. Supply curve of industry
|
| 3 |
Next best alternative use of resources is known as: |
- A. Implicit cost
- B. Explicit cost
- C. Opportunity cost
- D. Sunk cost
|
| 4 |
Under perfect competition: |
- A. AR > MR
- B. AR < MR
- C. AR = MR
- D. All of three
|
| 5 |
Under perfect competition average revenue is equal to: |
- A. Average cost
- B. Price
- C. Marginal revenue
- D. Both b and c
|
| 6 |
According to which theory every factor of production gets the reward of its services equal to its marginal product |
- A. Demand and supply theory
- B. Liquidity preference theory
- C. Marginal productivity theory
- D. Uncertainty theory
|
| 7 |
At least one factor is fixed in: |
- A. Market period
- B. Long period
- C. Short period
- D. All of three
|
| 8 |
Marginal revenue product curve is called |
- A. Demand curve of the firm
- B. Supply curve of the firm
- C. Demand curve of the industry
- D. Supply curve of industry
|
| 9 |
When AC is falling then: |
- A. MC = AC
- B. AVC = MC
- C. MC > AC
- D. MC < AC
|
| 10 |
In short average cost curve is: |
- A. Saucer shaped
- B. Negative slope
- C. U shaped
- D. Flatter
|
