11th Principles of Economics MCQS
If the most part of total supply of commodity is produced by one firm, it is called
Oligopoly
Perfect competition
Monopolistic competition
Monopoly
Under perfect competition, marginal revenue and average revenue curves
Remain parallel to x-axis
Moves from left to right upward
Remain parallel to y-axis
Moves from left to right downward
Under perfect competition in the long run a firm
Usually faces loss
Always earns abnormal profit
Usually earns abnormal profit
Always earns normal profit
What can a firm do in the short run
New firm can not enter the business
Firm can increase its plants
Firm can expand its building
New firm can enter the business
Firm earns maximum profit at the point where
Difference between total costs and total revenue is minimum
Total costs curve is above the total revenue curve
Total costs and total revenue curves intersect each other
Difference between total costs and total revenue is highest and the total revenue curve is above
A firm earns normal profit
When price of the commodity is more than average cost
When price of the commodity is equal to average cost
When total revenue is more than total costs
When price of the commodity is less than average cost
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