# Economics MCQS with Answers 1st Year Chapter 14

#### Economics MCQS with Answers 1st Year

The necessary condition for equilibrium of firm is
MC = MR
AVC = AFC
AR = MR
TVC = TFC

When TR of a competitive firm is equal to its TC, the firm attains.
Shutdown point
Sub-normal profit
Normal profit
Super normal profit

Choose the correct establish condition for equilibrium
Both a and b
MC intersects MR curve from below
MR = MC
MC + MR

Economic profit is
total revenue minus variable cost
total revenue minus total cost
part of total cost
total variable cost minus total fixed cost

When MR = MC , a firm.
Attains its equilibrium position
Does not attain a equilibrium position
Suffers from loss
Attains profit

profit is a maximum when
TC and TR curves are parallel
AC and AR curves are parallel
TFC and TVC are parallel
MC and MR curves are parallel

In the long-run a firm attains under monopoly;
Normal profit
Sub-normal profit
Any on of the above
Super normal profit

A firm will be in equilibrium where.
None of the three
Its total profit is high
It produces at a level of output which its profit is minimum or loss in minimum
Its cot is minimum

The necessary condition for equilibrium position of a firm is
MC = AC
MC > price
MC > MR
MC = MR

A firms reaches its shut down point where:
AC< AR
AC = AR
AVC = AR
AC > AR

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