Question # 1

If a firm shuts down temporarily, it will incur loss equal to

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AFC

AVC

TFC

TVC

Marginal revenue is always less than price at all level of output in

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perfect competition

monopoly

both a and b

none of the above

With an increase in wage rate supply of labour.

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Decrease

Increase

Remains constant

None of the three

In short period how many possibilities in which a firm may find itself

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four

five

six

seven

A market competition from in which there are very large number of firms producing a homogeneous commodity are called

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Perfect competition

Equilibrium of firm

Under perfect competition

None of these

Total profit = ?

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Per unit profit x output

Per unit profit x input

Per unit profit + output

per unit profit - input

MRP curve of a factor represents the.

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Supply curve of the factor

Demand curve of the factor

Either demand or supply curve of the factor

None of the three

Profit is maximum when

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TC and TR curves are parallel

MC and MR curves are parallel

TC and TR curves cross each other

AC and AR curves cross each other

The necessary condition for equilibrium position of a firm is

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MR > MC

MC > price

MC = MR

MC = AC

A firm should shut down in the short run if it is not covering its

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variable cost

fixed cost

total cost

explicit cost

Marginal revenue recommended by symbol

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MR

MC

AR

None of these

Under perfect competition

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AC = AVC

AR = AC

AR = MC

AR= MR

MRP curve of a firm represent demand curve of industry under.

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Imperfect compitition

Monolopy

Oligopoly

Perfect competition

The shape of marginal revenue product (MRP) curve is

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Inverted U

Steeper

Flatter

Positive

:It is not possible to separate marginal revenue product of each factor of production:. It was said by:

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Carver

Hobson

Hansen

Hicks

The most efficient scale of production of a firm is where

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LAC is minimum

SAC is minimum

LMC is minimum

SMC is minimum

One of the following is not assumption of the marginal productivity theory.

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All factors of production are present substitutes of each other.

Law of increasing return applies in the production process.

There is perfect mobility of factor of production

Units of each factors of production are identical

"The reward for a factor is determined by the marginal revenue product of the factor" . it was said by:

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J.M. Keynes

Taussing

Hansen

Carver

The demand for a factor is called.

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Composite demand

Joint demand

derived demand

No demand

The position of the firm when it is earning maximum of profit and Profit = Total Revenue - Total cost are called

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Perfect competition

Under perfect competition

Equilibrium of firm

None of these

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Economics Ics Part 1 English Medium Chapter 15 Online Test MCQs With Answers

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