Question # 1

When MR = MC , a firm.

Choose an answer

Does not attain a equilibrium position

Suffers from loss

Attains its equilibrium position

Attains profit

In the long run under perfect competition a firm produces at a point where

Choose an answer

LAC is minimum

SAC is minimum

both LAC and SAC are minimum

none is minimum

TR increase at a constant rate under:

Choose an answer

monopoly

Monopolistic

Perfect competition

Oligopoly

Under monopoly the price is always equal to:

Choose an answer

AR

MR

MC

AVC

When a competitive firm faces loss the slop of its MR curve is:

Choose an answer

Negative

Positive

Zero

Unity

We establish ______ conditions for equilibrium

Choose an answer

2

3

4

5

Choose the correct establish condition for equilibrium

Choose an answer

MR = MC

MC intersects MR curve from below

MC + MR

Both a and b

A firms reaches its shut down point where:

Choose an answer

AC > AR

AC = AR

AC< AR

AVC = AR

Profit is maximum when

Choose an answer

distance between TR and TC is maximum

distance between AR and AC is maximum

distance between MR and MC is maximum

distance between MR and AR is maximum

A firm attains equilibrium under monopoly if:

Choose an answer

MC curve intersect MR curve from below. MC = AC = MR

MC curve intersects MR from above

Any one of the above situations

AR = MR

An economic unit, which is independent to take decisions regarding the production and sale of goods are called

Choose an answer

Firm

Organization

Both a and b

None of these

profit is a maximum when

Choose an answer

TC and TR curves are parallel

MC and MR curves are parallel

AC and AR curves are parallel

TFC and TVC are parallel

At the point of equilibrium of firm under perfect competition

Choose an answer

MC curve must be rising

MC curve must be falling

MR curve must be rising

MR curve must be falling

Economic profit is

Choose an answer

part of total cost

total revenue minus total cost

total revenue minus variable cost

total variable cost minus total fixed cost

The basic goal of a firm is to

Choose an answer

maximize revenues

maximize employees' welfare

maximize profit

maximize output

If Bali burgers find that their MC of burgers is less than MR they would try to

Choose an answer

expand business

reduce business

continue as before

close business

A monopoly firm is in equilibrium when

Choose an answer

MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

The necessary condition for equilibrium position of a firm is

Choose an answer

MC > MR

MC > price

MC = MR

MC = AC

A firm earns economic profit when total profit exceeds

Choose an answer

normal profit

implicit costs

explicit costs

variable costs

Normal profit is attained where:

Choose an answer

TR = TC

TR >TC

AR > MR

AR < MR

More Classes

Other Links

Economics Ics Part 1 English Medium Chapter 14 Online Test MCQs With Answers

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer

Choose an answer