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Question-1
In the __________ a firm does not produce if it earns anything less than the normal profit.
(A)
Short run
(B)
Long run
(C)
Constant
(D)
Demand curve
Question-2
A change in input prices also affects a firms _________ curve.
(A)
Demand
(B)
Supply
(C)
Contraction demand
(D)
Income demand
Question-3
In perfect competition
(A)
The price equals the marginal revenue
(B)
The price equals the average variable costs
(C)
The fixed cost equals the variable costs
(D)
The price equals the total costs
Question-4
The point on the supply curve at which a firm earns normal profit is called
(A)
Supply
(B)
Demand
(C)
Normal Profit
(D)
Break Even point
Question-5
If the price of an input _________ the cost of production rises.
(A)
Decrease
(B)
Increase
(C)
Constant
(D)
Leftward
Question-6
For a perfectly competitive firm
(A)
Total revenue is a straight line
(B)
Price is greater than marginal revenue
(C)
Price equals total revenue
(D)
Price equals total cost
Question-7
The market supply curve shows the _________ levels that firms in the market produce in aggregate corresponding to different value of the market price.
(A)
Input
(B)
Output
(C)
Constant
(D)
High
Question-8
The profit level that is just enough to cover the explicit costs and opportunity costs of the firm is called the
(A)
Break Even point
(B)
Normal Profit
(C)
Demand
(D)
Supply
Question-9
The __________ of a good measures the responsiveness of quantity supplied to changes in the prices of the good.
(A)
Price elasticity of supply
(B)
Investment
(C)
Supply
(D)
Demand
Question-10
In the long run equilibrium in perfect competition.
(A)
Price = average cost = total cost
(B)
Price = average cost = marginal cost
(C)
Price = marginal revenue = total cost
(D)
Total revenue = total variable cost
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Plus 2 Commerce
Kerala (English Medium)
Practice in Related Chapters
INTRODUCTION TO MICROECONOMICS - THEORY
CONSUMER BEHAVIOUR AND DEMAND
THEORY OF CONSUMER BEHAVIOUR
INTRODUCTION TO MACRO ECONOMICS
Money and Banking
The Theory of Consumer Behaviour (Micro)
Market Equilibrium Under Perfect Competition (Micro)
Elasticity of Demand (Micro)
Theory of Demand (Micro)
Introduction to Micro Economics
Production Function-Returns to a Factor(Micro)
Supply and Elasticity of Supply (Micro)
Cost, Revenue and Producer's Equilibrium(Micro)
Forms of Market (Micro)
The Theory of the firm Under Perfect Competition
Aggreggate Demand and Aggregate Supply
National Income Accounting and Circular flow of Income (Macro)
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