| 1 |
An economic unit, which is independent to take decisions regarding the production and sale of goods are called |
- A. Firm
- B. Organization
- C. Both a and b
- D. None of these
|
| 2 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
|
| 3 |
Under monopoly the price is always equal to: |
|
| 4 |
A firm attains equilibrium under monopoly where: |
- A. AR = MR
- B. AC = MC
- C. MR = MC
- D. AR = AC
|
| 5 |
Normal profit is attained where: |
- A. TR = TC
- B. TR >TC
- C. AR > MR
- D. AR < MR
|
| 6 |
When TR of a competitive firm is equal to its TC, the firm attains. |
- A. Normal profit
- B. Super normal profit
- C. Sub-normal profit
- D. Shutdown point
|
| 7 |
The necessary condition for equilibrium of firm is |
- A. AVC = AFC
- B. AR = MR
- C. MC = MR
- D. TVC = TFC
|
| 8 |
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
|
| 9 |
There are large number of seller and buyers in the market but none is able to influence market price. such a market is called |
- A. free
- B. open
- C. regular
- D. competitive
|
| 10 |
Normally MR curve intersects MC curve at points |
|
