Economics MCQS with Answers 1st Year
A firm attains sub-normal profit when:
AR = AC
TR < TC
AR < AC
AR > AC
Total cost = Total variable cost in the.
Marked period
Short run
None of the three
Long run
Under monopoly the price is always equal to:
MC
MR
AVC
AR
A monopoly firm is in equilibrium when
TC intersects TR
MC intersects AC
MC intersect MR
AC intersects AR
We establish ______ conditions for equilibrium
5
3
2
4
A firm decides to shut down production temporarily when
price falls below AVC
MC start rising
price = AC
AC stat rising
The basic goal of a firm is to
maximize revenues
maximize profit
maximize employees’ welfare
maximize output
In the long-run a competitive firms attains only:
Super Normal profit
Marginal cost
Sub-Normal profit
Normal profit
Normally MR curve intersects MC curve at points
2
3
1
4
Compare with monopoly price, the competitive price ids always:
More than monopoly pruce
Equal to monopoly price
Non of the three
Less than monopoly price
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