| 1 |
Normal profit is attained where: |
- A. TR = TC
- B. TR >TC
- C. AR > MR
- D. AR < MR
|
| 2 |
Normally MR curve intersects MC curve at points |
|
| 3 |
Normal profit is |
- A. part of total cost
- B. part of economic profit
- C. part of fixed cost
- D. total revenue minus total cost
|
| 4 |
A competitive firm is in equilibrium in the long-run where: |
- A. ME = AR = LMC = P
- B. MR = AR = LMC = LAC
- C. MR < AR = LMC <LAC
- D. None of the three
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| 5 |
In the long run under perfect competition a firm produces at a point where |
- A. LAC is minimum
- B. SAC is minimum
- C. both LAC and SAC are minimum
- D. none is minimum
|
| 6 |
At the point of equilibrium of firm under perfect competition |
- A. MC curve must be rising
- B. MC curve must be falling
- C. MR curve must be rising
- D. MR curve must be falling
|
| 7 |
When a competitive firm faces loss the slop of its MR curve is: |
- A. Negative
- B. Positive
- C. Zero
- D. Unity
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| 8 |
profit is a maximum when |
- A. TC and TR curves are parallel
- B. MC and MR curves are parallel
- C. AC and AR curves are parallel
- D. TFC and TVC are parallel
|
| 9 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
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| 10 |
Under monopoly the price is always equal to: |
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