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Question-1
A profit maximising firm in perfect competition produces where ;
(A)
Total revenue is maximised
(B)
Marginal revenue equals marginal cost
(C)
Marginal revenue equals zero
(D)
Marginal revenue equals average cost
Question-2
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-3
Profit that earns over and above the normal profit is called
(A)
Depreciation
(B)
Devaluation
(C)
Super - normal profit
(D)
Budget
Question-4
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-5
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-6
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-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
A change in input prices also affects a firms _________ curve.
(A)
Demand
(B)
Supply
(C)
Contraction demand
(D)
Income demand
Question-9
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-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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