Question # 1

A monopoly firm is in equilibrium when

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MC intersects AC

MC intersect MR

AC intersects AR

TC intersects TR

Total cost = Total variable cost in the.

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Marked period

Short run

Long run

None of the three

TR increase at a constant rate under:

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monopoly

Monopolistic

Perfect competition

Oligopoly

Under monopoly the price is always equal to:

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AR

MR

MC

AVC

The basic goal of a firm is to

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maximize revenues

maximize employees' welfare

maximize profit

maximize output

The necessary condition for equilibrium of firm is

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AVC = AFC

AR = MR

MC = MR

TVC = TFC

Normal profit is

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part of total cost

part of economic profit

part of fixed cost

total revenue minus total cost

When TR of a competitive firm is equal to its TC, the firm attains.

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Normal profit

Super normal profit

Sub-normal profit

Shutdown point

Normal profit is attained where:

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TR = TC

TR >TC

AR > MR

AR < MR

A firm attains sub-normal profit when:

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AR = AC

AR < AC

AR > AC

TR < TC

A firm attains sub-normal profit under perfect competition when its:

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AR = P (Price)

AR < P

AC = P

AC < P

Economic profit is

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part of total cost

total revenue minus total cost

total revenue minus variable cost

total variable cost minus total fixed cost

Choose the correct establish condition for equilibrium

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MR = MC

MC intersects MR curve from below

MC + MR

Both a and b

A firm earns economic profit when total profit exceeds

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normal profit

implicit costs

explicit costs

variable costs

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

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Negative

Positive

Zero

Unity

In the long-run a firm attains under monopoly;

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Normal profit

Super normal profit

Sub-normal profit

Any on of the above

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

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expand business

reduce business

continue as before

close business

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

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