| 1 |
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
|
| 2 |
A firms reaches its shut down point where: |
- A. AC > AR
- B. AC = AR
- C. AC< AR
- D. AVC = AR
|
| 3 |
When a competitive firm faces loss the slop of its MR curve is: |
- A. Negative
- B. Positive
- C. Zero
- D. Unity
|
| 4 |
Compare with monopoly price, the competitive price ids always: |
- A. Less than monopoly price
- B. More than monopoly pruce
- C. Equal to monopoly price
- D. Non of the three
|
| 5 |
A firm earns economic profit when total profit exceeds |
- A. normal profit
- B. implicit costs
- C. explicit costs
- D. variable costs
|
| 6 |
The necessary condition for equilibrium of firm is |
- A. AVC = AFC
- B. AR = MR
- C. MC = MR
- D. TVC = TFC
|
| 7 |
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
|
| 8 |
Normally MR curve intersects MC curve at points |
|
| 9 |
A monopoly firm is in equilibrium when |
- A. MC intersects AC
- B. MC intersect MR
- C. AC intersects AR
- D. TC intersects TR
|
| 10 |
Total cost = Total variable cost in the. |
- A. Marked period
- B. Short run
- C. Long run
- D. None of the three
|
