Economics MCQS with Answers 1st Year
Total profit = ?
Per unit profit x output
Per unit profit x input
per unit profit – input
Per unit profit + output
The necessary condition for equilibrium position of a firm is
MC > price
MR > MC
MC = AC
MC = MR
Marginal revenue of a monopolist is
equal to price
increases with output
greater than price
less than price
The position of the firm when it is earning maximum of profit and Profit = Total Revenue – Total cost are called
Perfect competition
None of these
Equilibrium of firm
Under perfect competition
A firm decides to exit the industry when
price is less than LAC
AC starts rising
TC starts rising
MC starts rising
A monopoly generally
allocates resources in a socially optimal way
produces less quantity than the quantity which minimies average cost
encourages greater income equality
encourages greater efficiency
Profit is maximum when
TC and TR curves are parallel
MC and MR curves are parallel
TC and TR curves cross each other
AC and AR curves cross each other
MRP curve of a firm represent demand curve of industry under.
Perfect competition
Monolopy
Oligopoly
Imperfect compitition
With an increase in wage rate supply of labour.
Increase
Remains constant
None of the three
Decrease
In monopoly and perfect competition the cost curves are
falling in competition rising in monopoly
different
opposite
similar
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