11th Principles of Economics MCQS Chapter 7

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11th Principles of Economics MCQS

To increase profit a firm minimizes

Monopoly is opposite to
Perfect competition and imperfect competition both
Imperfect competition
Perfect competition

A firm is in equilibrium when its
Marginal revenue is more than marginal cost
Marginal revenue is equal to marginal cost
Marginal revenue is equal to average cost
Marginal revenue is less than marginal cost

When total revenue and total cost of a firm are equal, the firm earns
Abnormal profit
Normal profit
Abnormal loss
Normal loss

Usually elasticity of demand in equilibrium situation under monopoly is
Equal than unity
more than unity
Less than unity

In monopoly, when total revenue of a firm is maximum, then its marginal revenue is

If variable costs of a firm are covered partly under perfect competition, then that firm
Will not continue its business and close down
Will run with normal profit
Will run with minimum loss
Will run with abnormal profit

One condition which is not included in perfect competition conditions
Homogeneity of product
Large number of buyers and sellers
Perfect knowledge of the market
Difference in price

Till marginal cost curve remains below the marginal revenue curve, from the economic point of view, increase in production for a firm is
Neither beneficial nor unbeneficial
May be beneficial or unbeneficial

Industry is in equilibrium under perfect competition in the long run, when every existing firm in the industry
Is earning abnormal profit
Is earning normal profit
Is facing minimum loss
Is facing abnormal loss

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