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Question-1
In the long run in perfect competition:
(A)
The price equals the total revenue
(B)
Firms are allocatively inefficient
(C)
Firms are productively efficient
(D)
The price equals total cost
Question-2
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-3
Firms in perfect competition face a
(A)
Perfectly elastic demand curve
(B)
Perfectly inelastic demand curve
(C)
Perfectly elastic supply curve
(D)
Perfectly inelastic supply curve
Question-4
The _________ of a firm shows the level of output that the firm chooses to produce corresponding to different value of the market price.
(A)
Demand Curve
(B)
Supply Curve
(C)
Aggregate demand curve
(D)
Aggregate supply
Question-5
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-6
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-7
In perfect competition :
(A)
Short run abnormal profits are competed away by firms leaving the industry
(B)
Short run abnormal profits are competed away by firms entering the industry
(C)
Short run abnormal profits are competed away by the government
(D)
Short run abnormal profits are competed away by greater advertising
Question-8
___________ is a tax that the government imposes per unit sale of output.
(A)
Direct tax
(B)
Indirect tax
(C)
Unit tax
(D)
Tax
Question-9
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-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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