# 11th Principles of Economics MCQS Chapter 7

#### 11th Principles of Economics MCQS

The difference between total revenue (TR) and total cost (TC) is called
Utility
Profit or loss
Profit
Loss

Under monopoly, number of firms is
One
Few
Two
Large

Under monopoly, marginal revenue is _____ of output
Decreasing function
Cubic function
Increasing function

Firms equilibrium is at that point where
MC=AVC
MC=AC
MC=AR
MC=MR

When a firm earns abnormal profit in the short run, then its
MC=MR=AR=AC all are equal
MC=MR=AR while AC is less
MC=MR=AR while AC is more
MC=MR=AR while AV is sometimes equal to them and sometimes less than tham

Firm earns abnormal profit, when
AC=AR
AR>AC
AC=MC
AR<AC

The formula of calculating total revenue is
AC x Q
P x AC
TC / Q
P x Q

If the equation is this, MC=MR-AR(P)=AC, then the firm
Earns normal profit
Bears minimum loss
Earns abnormal profit
Bears abnormal loss

A monopolist controls the supply
Partially
More
Not at all
Totally

A monopolist firm usually earns
Minimum loss
Abnormal loss
Abnormal profit
Normal profit

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